Sandvik has signed an agreement with Milacron Inc., US, to acquire its North American metal-cutting tools business, Valenite. The acquisition is subject to approval of the antitrust authorities. Valenite is a leading 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, and manufacturing facilities in South Carolina, Michigan and Texas. Sandvik intends to operate Valenite as a separate company within its Sandvik Tooling business area. Valenite will retain its own identity and will continue to operate its own R&D, manufacturing, marketing and distribution channels. Sandvik acquires Valenite for SEK 1750 million. Goodwill is preliminarily estimated at approximately SEK 1000 million after restructuring costs.
