Sandvik Inks Deal To Buy GWS Tool For Undisclosed Sum

Sandvik AB (SDVKF.PK), a multinational engineering company, on Monday, said it has signed a deal to acquire GWS Tool Intermediate Holdings LLC from its beneficial owners, L Squared Capital Partners and GWS management. The financial terms of the transaction, which is expected to close during the fourth quarter of 2021, were not disclosed.

"With the acquisition of GWS, we take an important step in our shift to growth strategy where we have a clear ambition for our machining solutions business to increase market share in round tools and to enhance our presence in the North American market," commented Stefan Widing, CEO and President of Sandvik.

For 2021, on a pro forma basis, Florida-headquartered GSW is expected to have revenues of approximately SEK 875 million. The American firm has had strong revenue growth historically, and is expected to grow at a high single digit organic growth rate in the medium term. However, the impact on Sandvik's EBITA margin and earnings per share will initially be neutral, the acquirer said in a statement.

GWS is a provider of made-to-order round tools with a large exposure to the general engineering and aerospace segments.

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