Sandvik exits non-strategic businesses
At the Capital Markets Day 2023, Sandvik communicated the intention to increase the focus on software solutions and enabling hardware in the Sandvik Manufacturing Solutions offering. Furthermore, Sandvik communicated a revised additive manufacturing strategy to focus mainly on metal powders. As a consequence of these changes in strategic direction, the engineer-to-order business of DWFritz Automation (DWFritz) has been divested and the decision to seek an exit of the minority stake in BEAMIT has been made during the quarter. Charges totaling approximately SEK 390 million will be accounted for in the third quarter and reported as items affecting comparability. Out of the total charges, approximately SEK 250 million relates to a capital loss, including transactional costs, from the divestment of DWFritz, and about SEK 140 million relates to a write-down of the stake in BEAMIT.
Sandvik has divested the engineer-to-order business of DWFritz to the U.S.-based private equity firm Balmoral Funds. Sandvik acquired DWFritz in 2021, with the intention to grow the ZeroTouch® business of DWFritz. The ZeroTouch® platform is a unique inspection gauging equipment enabling near-line and in-line metrology and is an important part of the closed loop strategy. Since the acquisition, Sandvik has developed and started to commercialize ZeroTouch®, which will not be part of the divestment but remain a part of Sandvik.
Additionally, Sandvik has decided to seek an exit of its minority stake (approx. 30%) in the Italian additive manufacturing service provider BEAMIT. The decision to seek an exit is in line with Sandvik’s revised additive manufacturing strategy to focus mainly on metal powders.
DWFritz and the BEAMIT holding have both been reported within business area Sandvik Manufacturing and Machining Solutions.
Stockholm, September 27, 2024
Sandvik AB
For further information, contact Louise Tjeder, VP Investor relations, phone: +46 (0) 70782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 (0) 70721 1008
