Equipment maker Sandvik is growing again, this time with an agreement to acquire 67% of China-based round tools group Chuzhou Yongpu Carbide Tools.
While the financial details of the deal have not been released, Sandvik did confirm that it has the option in three years to buy the remaining percentage holding for the company.
Chuzhou Yongpu has been mainly focused on global and local OEMs, and connected suppliers operating in China, Sandvik said. It provides for the full solid round tools manufacturing value chain including blanks, cutting tools, reconditioning and coating services.
The company will be reported in Sandvik Coromant, a division within Sandvik Manufacturing and Machining Solutions. Chuzhou Yongpu Carbide Tools, based in Chuzhou, will continue to operate under its own brand.
The transaction is expected to close during the third quarter of 2021.