Jan 9 2007
Sandvik Hard Materials has reached an agreement with Rexam, the global consumer packaging company, to acquire the beverage can tooling business in Rexam's North American Equipment Manufacturing Division in Chicago, US. The operation acquired by Sandvik represents an invoicing of about SEK 50 M.
As part of the agreement Sandvik and Rexam have entered into a long term contract where Sandvik will supply Rexam's North American beverage can operation with cemented carbide can tooling and related services in North America.
The acquisition does not include employees and premises. The operation in Chicago including machinery and equipment will be transferred to Sandvik Hard Materials' existing can tools plant in Minneapolis, US. The transfer is expected to be completed in June 2007.
"The acquisition is a further step in our strategy to establish a world leading position as supplier of high performance tooling solutions to the beverage can industry. It also complements our close partnership with Rexam which already exists in all markets outside North America," says Tom Erixon, President of Sandvik Hard Materials.