Just six days after announcing a similar acquisition in Wisconsin, machining and mining conglomerate Sandvik announced Aug. 9 that it has acquired Switzerland-based Sphinx Tools Ltd., a supplier of precision round tools (micro tools) and surgical cutting tools.
Sphinx’s customers are primarily within the automotive, aerospace and medical segments, and the deal includes the company’s wholly-owned subsidiary P. Rieger Werkzeugfabrik AG (Sphinx Tools).
The company will be reported within Sandvik Coromant, a division within Sandvik Manufacturing and Machining Solutions.
Financial terms of the deal were not disclosed.
“With the acquisition of Sphinx Tools we continue to execute on our shift to growth strategy,” said Stefan Widing, Sandvik president and CEO. “Strengthening our position in round tools is one strategic priority for our machining solutions business, and with this acquisition, we will expand our product portfolio in the high growth area of micro tools.”
Stockholm, Sweden-based Sandvik said Sphinx Tools enhances Sandvik Coromant’s product offering within solid round tools and is an established player in the adjacent surgical cutting tools market. Sphinx is present in Europe with three production sites in Switzerland and has global distribution.
“The acquisition of Sphinx Tools fits very well with our strategy to strengthen our position in round tools,” said Nadine Crauwels, president of Sandvik Machining Solutions. “With Sphinx Tools we will have the opportunity to take a global leading position in micro tools, a premium niche of round tools, expand our product portfolio and enter an adjacent area of surgical tools. We are very pleased to welcome Sphinx Tools to the Group.”
Sphinx Tools was founded in 1994 and has around 115 employees. In 2021, the company generated revenues of approximately 292 MSEK ($28.8 million USD). The EBITA margin is neutral to Sandvik Manufacturing and Machining Solutions. The impact on Sandvik’s earnings per share will be limited, yet slightly positive.