Sandvik Materials Technology Divests its Welding Wire Business
SANDVIKEN, Sweden, Oct. 30, 2017 /PRNewswire/ -- Sandvik Materials Technology has signed an agreement to divest the welding wire operations to ESAB, a global leader in the welding industry and part of Colfax Corporation. The agreement completes the main step in the divestment plan for welding wire and stainless wire announced on 17 May 2017.
The deal includes the production units in Sandviken, Sweden and Scranton, US as well as the global sales and product management organization; in total approximately 120 employees. Revenues for the welding wire business amounted to 470 million SEK in 2016.
"We strongly believe that ESAB, with welding as its core business, is the right owner. The divestment enables us to further focus on our core operations according to Sandvik's strategy," says Björn Rosengren, Sandvik´s President and CEO.
"We are excited by the opportunity to better serve customers with a broader and enhanced portfolio of stainless steel and nickel filler metals," says Shyam Kambeyanda, President of ESAB.
The cash flow impact from the transaction is expected to be positive. Closing of the divestment is estimated to be completed within 2-4 months, following customary closing conditions.
The process to exit the stainless wire business, with about 270 million SEK in sales 2016, is progressing according to plan.
Stockholm, 30 October 2017
Sandvik AB
For further information contact:
Pär Altan
Vice President External Communications
Sandvik
Phone +46-70-616-2024
Ann-Sofie Nordh
Vice President Investor Relations
Sandvik
Phone +46-8-456-1494
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