Swedish high-technology engineering and steelmaking group Sandvik has announced that its subsidiary Sandvik Materials Technology has signed an agreement to divest its stainless wire business to Zapp Group, a German family-owned leading supplier of advanced metal products, for a consideration of SEK 183 million ($20.5 million). This divestment completes the full scope of the divestment plan for the welding and stainless wire operations, initially announced on May 17, 2017.
According to Sandvik’s statement, the deal includes the production unit in Sandviken, Sweden and the global sales organization, along with selected trademarks and patents; in total approximately 145 employees, of which the majority in Sandviken. Revenues for the stainless wire business amounted to SEK 310 million ($34.7 million) in 2017.