Sandvik has signed an agreement to divest Sandvik Process Systems to FAM AB, owned by the three largest Wallenberg foundations, for SEK 5 billion (US $573 million). The transaction is expected to close in early 2018 and is subject to the approval of relevant authorities.
Sandvik Process Systems delivers advanced industrial process solutions based on high-end steel belts, steel belt based equipment and process solutions within adjacent technologies. In 2016 the operations, with approximately 600 employees, had reported revenues of SEK 1.7 billion, representing 2% of Sandvik’s total revenues.
“This is an important step in focusing Sandvik on its core businesses. The divestment creates additional capacity for growth and expansion of the core business of Sandvik,” stated Björn Rosengren, President and CEO of Sandvik.
“We look forward to further develop, together with management and the employees, the Process Systems business as an independent company with strong focus on profitable growth,” added Lars Wedenborn, CEO FAM.