Seco Tools, a division of Sandvik Machining Solutions headquartered in Stockholm, Sweden, has agreed to acquire the cutting tools division of Quimmco Centro Tecnológico (QCT), a privately-owned company based in Mexico providing integral machining solutions.
QCT has more than twenty years of experience in the Mexican market, with strong capabilities in designing and manufacturing custom-made cutting tools. The acquisition is expected to enhance Seco Tools’ manufacturing and reconditioning capabilities in the growing Mexican market, serving customers in a wide range of industries, including aerospace, automotive, energy and transportation.
“I am pleased that we continue to pursue the pronounced ambition to grow the solid carbide tools business,” stated Lars Bergström, President of Sandvik Machining Solutions. “This acquisition fits very well with our long-term growth strategy and I would like to welcome QCT’s division to the family of Sandvik Machining Solutions.”
Fredrik Vejgården, President of Seco Tools, commented, “The acquisition of QCT’s cutting tools division expands our capabilities in custom made tools, meaning further long-term support in our productivity offering to customers.”
In 2018, QCT’s cutting tools division generated revenues of around 90 million SEK with 130 employees. The parties have agreed not to disclose the purchase price, with the transaction expected to close no later than the second quarter 2020.