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Sandvik divest process system operations to FAM AB

Published by , Digital Assistant Editor
Global Mining Review,


Sandvik has signed an agreement to divest Sandvik Process Systems to FAM AB, owned by the three largest Wallenberg foundations, at a price of 5.0 billion SEK.

Sandvik Process Systems delivers advanced industrial process solutions based on high-end steel belts, steel belt based equipment and process solutions within adjacent technologies. In 2016 the operations had reported revenues of 1.7 billion SEK, representing 2% of Sandvik’s total revenues and with a strong operating margin.

“This is an important step in focusing Sandvik on its core businesses. The divestment creates additional capacity for growth and expansion of the core business of Sandvik”, commented Björn Rosengren, President and CEO of Sandvik.

“We look forward to further develop, together with management and the employees, the Process Systems business as an independent company with strong focus on profitable growth”, said Lars Wedenborn, CEO FAM.

Sandvik Process Systems will remain reported in Other Operations in the Sandvik financial statements.

The closing of the transaction is expected no later than early 2018 and is subject to the approval of relevant authorities. Upon closing, the transaction will generate a substantial capital gain to be reported in Sandvik’s financial statements.

Read the article online at: https://www.globalminingreview.com/finance-business/06062017/sandvik-divest-process-system-operations-to-fam-ab/

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