Sandvik has signed an agreement with FAM AB to divest its Process Systems operations.
Sandvik Process Systems’ operations reported revenues of 1.7 billion SEK last year, representing 2% of Sandvik’s total revenues and with a strong operating margin.
Björn Rosengren, President and CEO of Sandvik, said: “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.”
Lars Wedenborn, CEO of FAM, added: “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.”
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.
The intention to divest Sandvik Process Systems was first communicated through a press release in May 2016.
Read the article online at: https://www.hydrocarbonengineering.com/refining/11072017/sandvik-to-divest-process-systems-operations/