SDVKY - Sandvik Acquires Chinese OSK

SANDVIKEN, Sweden, Nov. 26, 2018 /PRNewswire/ --Seco Tools, a division within Sandvik Machining Solutions, has reached an agreement to acquire the Chinese company Kunshan Ousike Precision Tools Co., Ltd (OSK), a leading supplier of solid carbide round tools. The acquisition will particularly strengthen the position and product offering to the fast growing Chinese electronics industry.

"The acquisition is aligned with Sandvik Machining Solutions' focus on growing the round tools business. We are already today well positioned in China but OSK will bring us even closer to customers", says Klas Forsström, President of Sandvik Machining Solutions.

"I am very happy that we have reached an agreement to acquire OSK and include them in the Seco family. OSK serves customers in the electronics and die and mould industries and this is an important step for Seco to improve its position in the fast growing Chinese market. Our combined expertise will strengthen the product offering to customers", says Lars Bergström, President of Seco Tools.

In 2017 OSK had revenues of 120 MSEK and 90 employees.

The parties have agreed not to disclose the purchase price. The deal is accretive to earnings per share from the start.

The transaction is expected to close during the first half of 2019 and is subject to relevant regulatory approvals.

For further information, contact Ann-Sofie Nordh, Vice President Investor Relations, phone: +46-8-456-14-94 or Martin Blomgren, Press and Media Relations Manager, phone: +46-70-577-0549.

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SOURCE Sandvik