Sandvik to divest process systems operations
Sandvik has signed an agreement to divest its Process Systems operations to FAM AB, which is owned by the three largest Wallenberg foundations, in a deal worth SEK5bn ($574.4m).
Sandvik Process Systems delivers advanced industrial process solutions based on steel belts, steel belt based equipment and process solutions within adjacent technologies.
In 2016 the operations, with approximately 600 employees, reported revenues of SEK1.7bn, representing 2% of Sandvik’s total revenues.
“This is an important step in focusing Sandvik on its core businesses,” explains Björn Rosengren, president and CEO of Sandvik. “The divestment creates additional capacity for growth and expansion of the core business of Sandvik.”
The transaction is expected to close no later than early 2018 and is subject to the approval of relevant authorities. Upon closing, the company says the deal will “generate a substantial capital gain” in Sandvik’s financial statements.
