G30 Business combinations
The acquisitions of business combinations executed in 2023 and 2024 are set out below. Annual revenue and number of employees reflect the latest available information at the time of the transaction.
Business area |
Cash generating unit |
Company/unit |
Country |
Acquisition date |
Annual revenue |
No. of employees |
||||
|---|---|---|---|---|---|---|---|---|---|---|
Sandvik Manufacturing and Machining Solutions |
Seco Tools |
Premier Machine Tools1) |
Ireland |
February 1, 2023 |
120 MSEK in 2022 |
14 |
||||
Sandvik Mining and Rock Solutions |
Sandvik Mining and Rock Solutions |
Polymathian |
Australia |
February 1, 2023 |
100 MSEK 12M |
50 |
||||
Sandvik Mining and Rock Solutions |
Sandvik Mining and Rock Solutions |
MCB Services and Minerals2) |
Brazil |
April 1, 2023 |
60 MSEK in 2022 |
53 |
||||
Sandvik Mining and Rock Solutions |
Sandvik Mining and Rock Solutions |
Norgalv |
Canada |
June 1, 2023 |
58 MSEK 12M |
42 |
||||
Sandvik Manufacturing and Machining Solutions |
Sandvik Manufacturing and Machining Solutions |
Postability |
Canada |
August 1, 2023 |
30 MSEK in 2022 |
13 |
||||
Sandvik Manufacturing and Machining Solutions |
Sandvik Coromant |
esco |
Germany |
November 2, 2023 |
14 MSEK in 2022 |
17 |
||||
Sandvik Manufacturing and Machining Solutions |
Sandvik Manufacturing and Machining Solutions |
Buffalo Tungsten |
USA |
December 1, 2023 |
333 MSEK in 2022 |
48 |
||||
|
||||||||||
Business area |
Cash generating unit |
Company/unit |
Country |
Acquisition date |
Annual revenue |
No. of employees |
||
|---|---|---|---|---|---|---|---|---|
Sandvik Manufacturing and Machining Solutions |
Sandvik Coromant |
pro-micron GmbH |
Germany |
February 1, 2024 |
88 MSEK in 2022 |
56 |
||
Sandvik Manufacturing and Machining Solutions |
Sandvik Manufacturing and Machining Solutions |
Cimquest, Inc. |
USA |
March 1, 2024 |
26 MUSD in 2023 |
55 |
||
Sandvik Manufacturing and Machining Solutions |
Sandvik Coromant |
Almü Präzisions-Werkzeug GmbH |
Germany |
May 1, 2024 |
7.1 MEUR1) in 2023 |
44 |
||
Sandvik Manufacturing and Machining Solutions |
Walter Group |
PDQ Workholding LLC |
USA |
June 1, 2024 |
36 MUSD in 2023 |
107 |
||
Sandvik Manufacturing and Machining Solutions |
SMS China Division |
Suzhou Ahno Precision Cutting Tool Technology Co., Ltd. |
China |
July 1, 2024 |
1.2 BSEK in 2023 |
1,200 |
||
Sandvik Mining and Rock Solutions |
Sandvik Mining and Rock Solutions |
Universal Field Robots |
Australia |
December 2, 2024 |
80 MSEK 12M |
40 |
||
|
||||||||
Acquisitions
The acquisitions were made through the purchase of 100% of shares and voting rights except for Suzhou Ahno. Sandvik acquired 60% of the shares in Suzhou Ahno during 2024, as well as call and put options of the remaining 28%. Prior to the acquisition, Sandvik owned a minority stake of 12% and thus, Sandvik owns a majority stake of 72% post acquisition. The remaining shares are expected to be acquired during 2025.
Sandvik received control over the operations on the date of closing. No equity instruments have been issued in connection with the acquisitions. All acquisitions have been accounted for using the acquisition method.
The amounts presented in the following tables detail the recognized amounts aggregated by business area. The relative amounts of the individual acquisitions are not considered significant except for the Suzhou Ahno acquisition which is disclosed separately. Sandvik is in the process of reviewing the final values for certain of the recently acquired businesses. No adjustments are expected to be material.
Total fair value of assets and liabilities of acquired businesses in 2024
The fair value of acquired assets and assessed liabilities has been preliminarily established for all acquisitions made during 2024. Only minor IFRS adjustments were made to the acquisition values.
|
SMR |
SMM |
Total |
|---|---|---|---|
Intangible assets |
10 |
9 |
19 |
Property, plant and equipment |
5 |
1,003 |
1,009 |
Other non-current assets |
16 |
140 |
155 |
Inventories |
3 |
323 |
327 |
Receivables |
6 |
923 |
930 |
Cash and cash equivalents |
2 |
241 |
244 |
Interest bearing loans and borrowings |
–13 |
–682 |
–695 |
Other liabilities and provisions |
–9 |
–606 |
–615 |
Deferred tax assets/liabilities, net |
–11 |
–220 |
–231 |
Net identifiable assets and liabilities |
10 |
1,132 |
1,141 |
Goodwill |
170 |
1,696 |
1,866 |
Other surplus values |
142 |
1,821 |
1,963 |
External liability to minority shareholders |
– |
–1,096 |
–1,096 |
Purchase consideration |
–322 |
–3,553 |
–3,874 |
Contingent and deferred considerations |
– |
28 |
28 |
Cash and cash equivalents in the acquired business |
2 |
241 |
244 |
Net cash outflow |
–319 |
–3,283 |
–3,603 |
Acquisitions made by Sandvik Mining and Rock Solutions
During 2024, Sandvik Mining and Rock Solutions has completed the acquisition of Universal Field Robots, a fast-growing Australia-based provider of autonomous interoperable solutions for the surface mining and underground mining markets. The relative amounts of the individual acquisition are not considered significant.
Acquisitions made by Sandvik Manufacturing and Machining Solutions
In July, Sandvik Manufacturing and Machining Solutions acquired a majority stake in the leading China-based company Suzhou Ahno Precision Cutting Tool Technology Co., Ltd. (Ahno) from the majority owner, Ningbo Baosi Energy Equipment Co., Ltd and related parties. The company will be reported within the business area segment Sandvik Machining Solutions.
Ahno has a leading position in precision cutting tools in the fast-growing local premium segment, with a broad product-and service offering and extensive sales, distribution and production footprint in China. With this acquisition Sandvik Machining Solutions further strengthens its leading position within round tools.
Ahno was founded in 2002, has approximately 1,200 employees and is headquartered in Suzhou, China. In 2023, the company generated revenues of approximately CNY 812 million (SEK 1.2 billion), mainly from China. Preliminary goodwill of SEK 1,205 million and other surplus values of SEK 1,356 million was recorded on the purchase.
|
Total SMM |
Whereof Suzhou Ahno |
|---|---|---|
Intangible assets |
9 |
9 |
Property, plant and equipment |
1,003 |
821 |
Other non-current assets |
140 |
106 |
Inventories |
323 |
264 |
Receivables |
923 |
795 |
Cash and cash equivalents |
241 |
182 |
Interest bearing loans and borrowings |
–682 |
–527 |
Other liabilities and provisions |
–606 |
–491 |
Deferred tax assets/liabilities, net |
–220 |
–189 |
Net identifiable assets and liabilities |
1,132 |
971 |
Goodwill |
1,696 |
1,205 |
Other surplus values |
1,821 |
1,356 |
External liability to minority shareholders |
–1,096 |
–1,096 |
Purchase consideration |
–3,553 |
–2,436 |
Contingent and deferred considerations |
28 |
– |
Cash and cash equivalents in the acquired business |
241 |
182 |
Net cash outflow |
–3,283 |
–2,254 |
|
SMR |
SMM |
Total |
|---|---|---|---|
Contributions as of acquisition date |
|
|
|
Revenues |
3 |
1,083 |
1,086 |
Profit (loss) for the year |
–1 |
–79 |
–79 |
Contributions if the acquisition date would have been January 1 |
|
|
|
Revenues |
65 |
1,912 |
1,978 |
Profit (loss) for the year |
10 |
3 |
13 |
|
SMR |
SMM |
Total |
||||||
|---|---|---|---|---|---|---|---|---|---|
|
2023 |
2024 |
Change |
2023 |
2024 |
Change |
2023 |
2024 |
Change |
Intangible assets |
0 |
0 |
– |
– |
– |
– |
0 |
0 |
– |
Property, plant and equipment |
105 |
105 |
– |
20 |
20 |
– |
125 |
125 |
– |
Other non-current assets |
16 |
16 |
– |
3 |
3 |
– |
19 |
19 |
– |
Inventories |
11 |
11 |
– |
127 |
122 |
–5 |
138 |
133 |
–5 |
Receivables |
37 |
37 |
– |
70 |
68 |
–2 |
107 |
105 |
–2 |
Other current assets |
– |
– |
– |
32 |
32 |
– |
32 |
32 |
– |
Cash and cash equivalents |
23 |
23 |
– |
26 |
26 |
– |
48 |
48 |
– |
Interest bearing loans and borrowings |
–144 |
–145 |
–1 |
–17 |
–17 |
– |
–161 |
–162 |
–1 |
Other liabilities and provisions |
–26 |
–26 |
– |
–63 |
–63 |
0 |
–89 |
–89 |
0 |
Deferred tax assets/liabilities, net |
–56 |
–74 |
–18 |
3 |
–22 |
–25 |
–53 |
–96 |
–43 |
Net identifiable assets and liabilities |
–33 |
–53 |
–20 |
199 |
167 |
–31 |
165 |
114 |
–51 |
Goodwill |
782 |
792 |
10 |
266 |
239 |
–28 |
1,049 |
1,031 |
–18 |
Other surplus values |
760 |
770 |
10 |
120 |
179 |
59 |
880 |
949 |
69 |
External liability to minority shareholders |
– |
– |
– |
–4 |
– |
4 |
–4 |
– |
4 |
Purchase consideration |
–1,509 |
–1,509 |
–1 |
–580 |
–585 |
–5 |
–2,089 |
–2,094 |
–5 |
Contingent and deferred considerations |
87 |
75 |
–12 |
75 |
33 |
–41 |
162 |
108 |
–53 |
Cash and cash equivalents in the acquired business |
23 |
23 |
– |
26 |
26 |
– |
48 |
48 |
– |
Net cash outflow |
–1,399 |
–1,411 |
–12 |
–480 |
–526 |
–46 |
–1,879 |
–1,938 |
–59 |
The fair value of the acquisitions made during 2023 have changed due to the establishment of a final purchase price allocation during 2024.
§ Accounting principles
The consolidated financial statements are prepared in accordance with the acquisition method. In business combinations, acquired assets and assumed liabilities are identified and classified, and measured at fair value on the date of acquisition (also known as a purchase price allocation).
Transaction costs in conjunction with acquisitions are reported directly in profit or loss for the year as other operating expenses.
Contingent considerations are recognized as financial liabilities and at fair value on the acquisition date. Contingent considerations are remeasured at each reporting period with any change recognized in profit or loss for the year.
In step acquisitions, when a controlling interest is achieved, any net assets acquired earlier in the acquired units are remeasured at fair value and the result of the remeasurement is recognized in profit or loss. If the controlling interest is lost upon divestment, net profit is recognized in profit or loss. Any residual holding in the divested business is then measured at fair value on the date of divestment and its effect is recognized in profit or loss for the year.
! Critical estimates and judgments
The business areas use estimates and judgments regarding allocation of goodwill and other surplus values in a business combination.