Sandvik to acquire North American tungsten powder manufacturer Buffalo Tungsten
October 26, 2023
Sweden’s Sandvik AB has announced it is to acquire Buffalo Tungsten, Inc. (BTI), a manufacturer of tungsten metal powder and tungsten carbide powder headquartered in Depew, New York, USA.
The acquisition of BTI is set to expand Sandvik’s presence in the North American market and strengthen its regional capabilities in the component manufacturing value chain. The integration of BTI provides the opportunity to optimise material sourcing and boost the local production of tungsten metal powder at its Depew facility. The acquisition will complement Sandvik’s existing production of similar products at its Wolfram facility in St Martin, Austria.
“With the acquisition of BTI we take an important step in our strategic ambition to strengthen our presence in the North American market. BTI will enhance our regional capacity to produce tungsten powder locally in US, which will improve our competitive position,” shared Stefan Widing, President and CEO of Sandvik.
BTI was founded in 1987 and currently employs forty-eight people. In 2022, the company generated approximately SEK 333 million in revenue. The impact on Sandvik’s EBITA margin is anticipated to be minimal, but the earnings per share are expected to increase.
“With BTI we will be able to better meet the customer demand which will give us great opportunities in North America. BTI’s contract for clean hydropower from the Niagara Power Project will also enable us to manufacture tungsten in a more sustainable way,” added Nadine Crauwels, President of Sandvik Machining Solutions.
Both parties have agreed not to disclose the purchase price, with the transaction expected to close in the fourth quarter of 2023. Once completed, Buffalo Tungsten will be reported within the business area segment Sandvik Machining Solutions.
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