Sandvik Extends Public Offer to Seco Tools Shareholders
In November, Sandvik AB, the Sweden-based parent of Sandvik Coromant,: announced a recommended public offer to acquire all remaining shares in its subsidiary Seco Tools AB, one of the world’s largest manufacturers of metal-cutting tools. The offer was part of Sandvik’s strategy to strengthen the Sandvik Machining Solutions business area.
For each class B share in Seco Tools, Sandvik offered 1.2 shares in Sandvik. The offer was recommended by the Seco Tools board of directors. Several of the companies’ major shareholders also reacted positively toward the offer, whose acceptance period was to have ended January 10, 2012.
The formation of Sandvik Machining Solutions confirms the company’s concentration on cutting tools as a core area with significant growth and profitability potential. Seco Tools’ strong brand and its cutting-tool offering complements Sandvik’s multibrand portfolio, and bringing Seco Tools closer to Sandvik will give the former full access to the resources of the latter, especially in terms of product development, production technology and supply chain capabilities.
It is Sandvik’s intention that the management team of Seco Tools continue as before. Seco Tools will be an independently managed product area under the umbrella of Sandvik Machining Solutions, in parallel with Walter and Sandvik Coromant. Nor are any material changes regarding Seco Tools employees, terms of employment or places of business planned.
“This is a natural step, with a clear industrial rationale, in line with our strategy to continue to strengthen our leading position in the global market for cutting tools,” explained Olof Faxander, Sandvik’s president and CEO. “Bringing Walter from being a separately listed company into the Sandvik multibrand model was a success and generated higher growth and profitability. Treating Seco Tools in a similar way will enable us to leverage on the total resources and investments in, for example, research and development, which will further strengthen our position in the increasing global competition.”
For further information::
Sandvik Coromant Europe Zaventem, Belgium www.sandvik.coromant.com Tel. +32 2 7029868 Fax +32 2 7260369