Sandviken, Sweden, Dec. 20, 2019—Seco Tools, a division of Sandvik Machining Solutions, has reached an agreement to acquire the cutting tools division of QUIMMCO CENTRO TECNOLÓGICO (QCT), a privately owned Mexican company offering integral machining solutions.
“I am pleased that we continue to pursue the pronounced ambition to grow the solid carbide tools business. This acquisition fits very well with our long-term growth strategy and I would like to welcome QCT's division to the family of Sandvik Machining Solutions,” said Lars Bergström, president of Sandvik Machining Solutions.
With more than 20 years’ experience in the Mexican market, QCT has strong capabilities in designing and manufacturing custom made cutting tools, according to Bergström. The acquisition enhances Seco Tools’ manufacturing and reconditioning capabilities on the growing Mexican market, serving customers in a range of industries, including aerospace, automotive, energy and transportation.
“The acquisition of QCT’s cutting tools division expands our capabilities in custom made tools, meaning further long-term support in our productivity offering to customers,” said Fredrik Vejgården, president of Seco Tools.
In 2018, QCT's cutting tools division generated revenues of about 90 million SEK with 130 employees.
The parties have agreed not to disclose the purchase price. The deal has a limited impact to earnings per share from the start. The transaction is expected to close no later than during the second quarter 2020 and is subject to customary approvals.