Sandvik Leaves So-called Non-Strategic Businesses

Sandvik reports that it plans to enhance its focus on software solutions and enabling hardware in the Sandvik Manufacturing Solutions offering. Additionally, Sandvik has shared a revised additive manufacturing strategy to focus primarily on metal powders. As a result of these changes in strategic plans, the engineer-to-order business of DWFritz Automation (DWFritz) has been divested and the move to let go of its minority stake in BEAMIT was made during the quarter.

Charges totaling approximately SEK 390 million will be accounted for in the third quarter and reported as items affecting comparability. Out of the total charges, approximately SEK 250 million relates to a capital loss, including transactional costs, from the divestment of DWFritz, and about SEK 140 million relates to a write-down of the stake in BEAMIT.

Sandvik has divested the engineer-to-order business of DWFritz to the U.S.-based private equity firm Balmoral Funds. Sandvik acquired DWFritz in 2021, with plans to grow the ZeroTouch business of DWFritz. The ZeroTouch platform is an inspection gauging equipment enabling near-line and in-line metrology and is part of the closed-loop strategy. Since the acquisition, Sandvik has developed and started to commercialize ZeroTouch, which will not be part of the divestment but remain a part of Sandvik.

Additionally, Sandvik has decided to seek an exit of its minority stake (approximately 30%) in the Italian additive manufacturing service provider BEAMIT. The decision to seek an exit is in line with Sandvik's revised additive manufacturing strategy to focus mainly on metal powders.

DWFritz and the BEAMIT holding have been reported within business area Sandvik Manufacturing and Machining Solutions.

Sources: Press materials received from the company and additional information gleaned from the company’s website.