Sandvik acquires US round tools manufacturer GWS Tool Group

November 23, 2021

GWS sells a wide range of cutting tools for numerous applications (Courtesy GWS)

Sandvik AB, Stockholm, Sweden, has signed an agreement to acquire 100% of the equity interests of made-to-order round tools provider GWS Tool Intermediate Holdings LLC, Tavares, Florida, USA, from its owners L Squared Capital Partners and GWS management for an undisclosed price. GWS will be reported within Walter, a division of Sandvik Manufacturing and Machining Solutions.

“With the acquisition of GWS, we take an important step in our shift to growth strategy where we have a clear ambition for our machining solutions business to increase market share in round tools, and to enhance our presence in the North American market,” stated Stefan Widing, CEO and president of Sandvik.

GWS primarily sells made-to-order products, such as polycrystalline diamond tools and taps. The company’s operational presence in the US and speed-to-market capabilities are intended to improve Walter’s value proposition and position in the manufacturing of advanced components and lightweight materials, while strengthening and complementing Walter’s current customer end-market exposure.

GWS has around 490 employees. For 2021, on a pro forma basis, the company is expected to have revenues of approximately SEK 875 million. GWS has reportedly have strong revenue growth historically, and is expected to grow at a high single digit organic growth rate in the medium term. The impact on Sandvik’s EBITA margin and earnings per share is expected to be neutral initially.

Nadine Crauwels, president of Sandvik Machining Solutions, added, “We are pleased to add the GWS product portfolio to our existing US offering and become a one-stop shop for round tools for our North American customers. GWS brings us complementary production capabilities and strengthens our foothold within general engineering and aerospace, while having only a limited, low-single digit exposure to internal combustion engines. With its solid position within custom round tools and strong customer focus, GWS is a great fit for Sandvik Machining Solutions.”

The transaction is expected to close during the fourth quarter of 2021 and is subject to relevant regulatory approvals.

www.home.sandvik/en

www.gwstoolgroup.com

Latest Industry News

Download the latest issue of PM Review

Our latest issue is now available to download in PDF format, free of charge.

As well as an extensive Powder Metallurgy industry news section, this 120-page issue includes the following exclusive articles and reports:

  • Tesla teardown: Identifying potential uses for PM in electric vehicle transmissions
  • Can European research still claim to be ‘world class’? Prof José M Torralba on the changed PM research base
  • How to make metal powders. Part 1: An introduction to atomisation, process fundamentals and powder characteristics
  • Starting out in powder production: The story of Fomas Group’s Mimete metal powder business
  • The creation of a Powder Metallurgy market leader: China’s NBTM New Materials Group Co., Ltd.
  • Tungsten heavy alloys: An exploration of how key property combinations enable better mechanical performance
  • Pharmaceuticals and PM are closer than you think: A new approach to understanding powder compaction and tablet characterisation
  • More information

Industry News

E-newsletter

Sign up to our free e-newsletter, sent weekly to industry professionals around the world. We'll also let you know each time a new issue of PM Review magazine is available.

Subscribe for a FREE digital magazine

PM Review is the leading international magazine for the Powder Metallurgy industry.
Published four times a year, it is available as a free download or through a print subscription

Connect with us

Powder Metallurgy: The original net-shape production process

Powder Metallurgy components are relied upon by a wide variety of manufacturing industries, from automotive to power tools, household appliances, chemical engineering, filtration and more.

The main reason for the technology’s success is its cost-effectiveness at producing high volumes of net-shape components, combined with its ability to allow the manufacture of products that, because of the production processes, simply cannot be manufactured by other methods.

To discover more about how the technology has revolutionised component production, browse our Introduction to Powder Metallurgy.

Latest industry news

Copy link