Sandvik announced the recent aquisitions of QCT’s cutting tools division and Summerill Tube Corp.
Seco Tools, a division of Sandvik Machining Solutions, has reached an agreement to acquire the cutting tools division of QUIMMCO CENTRO TECNOLÓGICO (QCT), a privately owned Mexican company offering integral machining solutions.
“I am pleased that we continue to pursue the pronounced ambition to grow the solid carbide tools business. 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”, says Lars Bergström, President of Sandvik Machining Solutions.
With more than 20 years’ experience in the Mexican market, QCT has strong capabilities in designing and manufacturing custom made cutting tools. The acquisition enhances Seco Tools’ manufacturing and reconditioning capabilities on the growing Mexican market, serving customers in a wide range of industries, including aerospace, automotive, energy and transportation.
“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”, says Fredrik Vejgården, President of Seco Tools.
In 2018, QCT’s cutting tools division generated revenues of about 90 million SEK with 130 employees.
The parties have agreed not to disclose the purchase price. The deal has a limited impact to earnings per share from the start. The transaction is expected to close no later than during the second quarter 2020 and is subject to customary approvals.
Sandvik has also signed an agreement to acquire privately owned Summerill Tube Corporation, based in Pennsylvania. Summerill Tube Corporation is a manufacturer of high precision tubes and since 1892 it has delivered seamless and welded tubing in stainless steels and nickel alloys to various high demanding industries including aerospace, transportation and petrochemical.
“I am pleased with the acquisition of Summerill as it increases our presence in the US, enabling profitable growth”, says Göran Björkman, President of Sandvik Materials Technology.
Summerill Tube Corporation will be part of the business unit Specialized within the Tube division.
“This is a great match for us as the capability of producing and offering stainless steel and high nickel tubes in the US market is a priority. It enables further growth in an attractive market segment”, says Michael Andersson, Head of Tube Divison, Sandvik Materials Technology.
In 2018, Summerill Tube Corporation generated revenues of about 100 million SEK, with 45 employees.
The parties have agreed not to disclose the purchase price. The deal has a limited impact on earnings per share from the start. The transaction is expected to close in early January 2020 and is subject to regulatory approval.