Sandvik has signed an agreement with Milacron Inc., USA, to acquire its North American metal-cutting tools business Valenite. The acquisition is subject to approval of the antitrust authorities. Valenite is a supplier of highly engineered metal-cutting tooling solutions to the North American market. The company, with about 1300 employees, has its head office in Madison Heights, Michigan, USA and manufacturing facilities in South Carolina, Michigan and Texas. In 2001 the company posted revenues of approximately SEK 2000 million with an operating profit of SEK 30 milliom. While 2001 results were
strongly affected by the recession in North America, the business historically achieved an average operating margin of around 10%.
Sandvik intends to operate Valenite as a separate company within its Sandvik Tooling business area. Valenite will retain its own identity and continue to operate its own R&D, manufacturing, marketing and distribution channels.
