Seco Tools AB, Fagersta, Sweden, a division of Sandvik Machining Solutions, has completed its acquisition of the Cutting Tool division of Quimmco Centro Tecnológico (QCT), a privately-owned Mexican company and subsidiary of the Quimmco Group which offers integral machining solutions.
The Cutting Tool division acquired from QCT is said to be a leading solid carbide tooling manufacturer, specialising in custom products and reconditioning, and has three locations in Mexico to support customers. In 2019, QCT’s Cutting Tools division generated revenues of about 90 million SEK, and the division employs 130. The deal is believed to have a limited impact on earnings per share from the start.
The division will continue to serve its present customers and will begin serving Seco customers directly after closing. It will become a wholly-owned part of Seco Tools de Mexico as of June 1, 2020, and will discontinue the use of the QCT name.
“With this acquisition, we build an even stronger foundation in North America for our round tools business,” stated Fredrik Vejgården, President of Seco Tools AB, “giving us additional capabilities within the fast-growing area of round tools.”
Rob Keenan, President, Seco North America, commented, “This is a great complement to our product and service portfolio in North America and enables Seco to serve the growing demand for solid carbide tools in Mexico.”
“The demand for high-performance tooling solutions in Mexico is increasing, especially in the aerospace and automotive segments,” he continued. “The QCT acquisition positions us to meet that demand by being close to customers with engineering and production capabilities.”