Sandvik sells processing business for US$576m to Wallenberg-owned fund
20 June 2017Sandvik AB, Stockholm, Sweden, has agreed to divest Sandvik Process Systems to Foundation Asset Management AB, an investment firm owned by the Wallenburg family, for US$575.6m. Sandvik Processing Systems manufactures high strength steel press belts for the composite panel industry. The agreement is set to close no later than early 2018.
The sale by Sandvik is part of management's strategy to focus more closely on making industrial tools and materials.
"This is an important step in focusing Sandvik on its core businesses," said Sandvik chief executive Bjorn Rosengren. "The divestment creates additional capacity for growth and expansion of the core business of Sandvik."
The buyer of the business, Foundation Asset Management AB, is a Swedish holding company owned by the three largest Wallenberg foundations: Te Knut and Alice Wallenberg Foundation, the Marianne and Marcus Wallenberg Foundation, and the Marcus and Amalia Wallenberg Foundation.
