Sandvik signs agreement to divest Hyperion
December 18, 2017
Sandvik has reportedly signed an agreement to divest Hyperion to US-listed investment firm KKR at a price of 4 billion SEK. Hyperion delivers advanced wear-resistant tools, applications and components in hard and super-hard materials. The company employs approximately 1,400 and in the last twelve months reported revenues of 3.2 billion SEK, representing 4% of Sandvik’s total revenues.
Björn Rosengren, President and CEO of Sandvik, stated, “I’m pleased that we have found a new owner who will support Hyperion’s continued development. This agreement is an important step in focusing Sandvik on its core businesses. The divestment creates additional capacity for growth and expansion for the core business of Sandvik.”
“Hyperion is known for its high-quality, effective products and has a loyal customer following,” added Pete Stavros, Head of KKR’s Industrials investment team. “We see tremendous opportunity to help support the growth of the company and its customers by establishing the business as a standalone entity.”
Hyperion will continue to be reported in Sandvik’s financial statements under Other Operations until closure of the deal. The transaction is expected to close during the first half 2018 and is subject to the approval of relevant authorities. Upon closing, the transaction will generate a capital gain to be reported in Sandvik’s financial statements.