Sandviken, Sweden – Sandvik Coromant parent company Sandvik AB, Sandviken, Sweden, has reached an agreement to acquire the remaining 51 percent of shares in Precorp Inc., a company based in Spanish Fork, UT.
The acquisition is expected to be concluded by October 1, 2013 and Precorp Inc. will be consolidated into Sandvik Machining Solutions. Sandvik has been the minority share owner (49 percent) of Precorp Inc. since 2008.
Precorp Inc. was founded in 1986 and offers a full line of Polycrystalline Diamond (PCD) and carbide tools including drills, reamers, end mills, port tools, and micro tools to meet the requirements of high speed machining of die cast aluminum, carbide parts and the machining of advanced composite materials as well as many other materials. The company serves customers worldwide, primarily within the aerospace and automotive segments.
In 2012 Precorp Inc. had sales of approximately $37 million, (230 MSEK), with 200 employees.
"The already existing co-operation between Sandvik Machining Solutions and Precorp has led to several new business opportunities. The acquisition of the remaining shares in Precorp is a logic step and is in line with Sandvik's long-term strategy to have full ownership of core assets. Through the acquisition, we intend to further develop and strengthen the global business for engineered special diamond and cemented carbide based cutting tools, particularly in the attractive aerospace segment", says Jonas Gustavsson, President of Sandvik Machining Solutions.
"I am confident that this acquisition is a good step, both for Sandvik and for Precorp. Precorp's long-term strategy for growth in the Aerospace segment is in line with Sandvik's strategy and now we will work even more integrated to generate innovative solutions for our customers", says Richard Garrick, President of Precorp Inc.