On Jan. 14, Sandvik announced that it has completed the previously reported acquisition of Summerill Tube Corp., a manufacturer of high precision tubes. Since 1892 Summerill Tube Corp. has delivered seamless and welded tubing in stainless steels and nickel alloys to various high demanding industries including aerospace, transportation and petrochemical.
Summerill Tube Corp. is headquartered in Pennsylvania and generated revenues of about 100 million SEK with 45 employees in 2018. The deal has a limited impact on earnings per share from the start.
On Jan. 2, Sandvik announced that Walter, a division within Sandvik Machining Solutions, has reached an agreement to acquire the privately owned U.S. based company Melin Tool Co., a manufacturer of solid carbide tools. The acquisition further strengthens Walter’s round tool offering, especially for the aerospace industry and the US channel partner market.
“By this acquisition we will further strengthen our round tools offering which is in line with Sandvik Machining Solutions’ growth strategy,” says Lars Bergström, President of Sandvik Machining Solutions.
“I am very pleased that we have reached an agreement to acquire Melin Tool Co. as it increases our market presence, and has a strong innovation focus and high service level that is aligned with Walter’s approach to doing business,” says Richard Harris, President of Walter.
In the 12-month period ending September 2019 Melin Tool Company generated revenues of 22 million USD with 100 employees.
The parties have agreed not to disclose the purchase price. The transaction was closed on Dec. 31, 2019. The deal is neutral to Sandvik earnings per share from the start.