Alleima acquires production facility for small diameter bars
Alleima has signed an agreement to acquire the Swedish company Söderfors Steel Operations AB (“Söderfors Steel"). The acquisition will add capabilities in hot rolling of small diameter bars and profiles to expand the offering of advanced materials for the Medical and Aerospace segments. The company will be reported within the Tube division.
“Important drivers of our profitable growth strategy include winning business and market shares within the fast-growing Medical and Aerospace segments. The acquisition of Söderfors Steel allows us to further widen our offering in these segments by adding complementing capabilities, enabling expansion to many new product applications within attractive niches. I welcome Söderfors Steel to our Group”, says Göran Björkman, President and CEO of Alleima.
The acquisition will provide Alleima with capabilities to manufacture bars with a diameter less than 80 millimeters in high performance materials as nickel base alloys and remelted stainless steel. Currently, Söderfors Steel is a subcontractor to Alleima and other customers. By adding these capabilities, Alleima will be able to manufacture small diameter bars in-house, an important ability for the positioning and growth in medical as well as aerospace applications.
The production facility and head office of Söderfors Steel is located in Söderfors, Sweden, with approximately 50 employees. In 2022 Söderfors Steel had revenues of approximately SEK 145 million and an EBIT margin neutral to the Tube division. Impact on earnings per share will be accretive from the start. The parties have agreed not to disclose the purchase price. The transaction is expected to close during the first half of 2023.
Sandviken, April 20, 2023
Alleima AB (publ)
Related links:
— Medical offering at Alleima – Website
— Transportation offering at Alleima — Website
Contact details
Emelie Alm, Head of Investor Relations
emelie.alm@alleima.com
Phone: +46 (0) 79 060 87 17
Yvonne Edenholm, Press and Media Relations Manager
yvonne.edenholm@alleima.com
Phone: +46 (0) 72 145 23 42
About Alleima
Alleima AB, is a global manufacturer of high value-added products in advanced stainless steels and special alloys as well as solutions for industrial heating. Based on long-term customer partnerships and leading materials technology, we develop products for the most demanding applications and industries. Our offering includes products like seamless steel tubes for the energy, chemical and aerospace industries, precision strip steel for white goods compressors, air conditioners and knife applications, based on more than 900 active alloy recipes. It also includes ultra-fine wires for medical and micro-electronic devices, industrial electric heating technology and coated strip steel for fuel cell technology for cars, trucks, and hydrogen production. Our fully integrated value chain, from R&D to end-product, ensures industry-leading technology, quality, sustainability, and circularity. Alleima, with headquarter in Sandviken, Sweden and revenues of SEK 18.4 billion in 2022, has approximately 5,900 employees and customers in approximately 90 countries. Alleima was listed on Nasdaq Stockholm on August 31, 2022 under the ticker ‘ALLEI’. Learn more at www.alleima.com