Sandvik divests Sorting Systems unit
Sandvik divests Sorting Systems unit Sandvik has reached an agreement with the investment company Advent International Corp., Boston, covering the sale of the operations within Sorting Systems, a unit within the Sandvik Process Systems business area. Sorting Systems designs and supplies plants for automatic sorting of goods and operates globally with technology centers in the U.S., Japan and Italy. Annual sales amount to about SEK 1.2 billion, with approximately 400 employees. A final agreement is conditional upon approvals of the requisite authorities. The divestment has a marginal result effect for the Sandvik Group. The other operations within Sandvik Process Systems, steel belts and steel- belt-based process plants, in which Sandvik holds world-leading positions, are not affected by the transaction. Advent intends to form a separate company for the sorting operations in which Sandvik will own 20% of the shares during a transition period and contribute temporarily to the financing. The immediate positive liquidity effect for Sandvik is approximately SEK 150 M. Management within the Sorting Systems will also be offered an opportunity to acquire shares in the new company. Further add-on acquisitions are already being considered by the newly formed company. "Automated sorting systems represents an interesting growth market. However, it no longer has a natural link to Sandvik's core areas. The synergy possibilities with other areas are limited," says Executive Vice President Leif Sunnermalm of Sandvik. "As a result of the agreement with Advent, better conditions are created for the future development of the sorting operations. We selected Advent because of its industrial approach and wide experience with similar international businesses," says Leif Sunnermalm. dviken, 18 February 1999 dvik AB; (publ) For further information, contact: Leif Sunnermalm, Executive Vice President, Sandvik AB, +46 26 26 10 60. Dir. Ralf Huep/Will Schmidt, Advent International +49 699 552 700. The Sandvik Group has a total of 38,000 employees in 300 companies in 130 countries. Sales exceed SEK 40 billion. The product areas are: tools for chip- forming metalworking; machinery and equipment for rock excavation; stainless and high-alloy steel, specialty metals and resistance heating materials; cemented-carbide blanks, saws and other hand tools as well as process systems. Advent International Corp., based in Boston in the US, is one of the world´s largest private equity firms, it advises institutional funds with over USD 3.4 billion and has offices and investments advisors in 15 countries. Founded in 1984, Advent has invested in over 400 companies in a variety of industries around the world. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/18/19990218BIT00450/bit0001.doc http://www.bit.se/bitonline/1999/02/18/19990218BIT00450/bit0002.pdf