STOCKHOLM, Oct. 26, 2023 /PRNewswire/ — Sandvik has signed an agreement to acquire Buffalo Tungsten, Inc. (BTI), a leading US based manufacturer of tungsten metal powder and tungsten carbide powder, primarily operating in North America. The company will be reported within the business area segment Sandvik Machining Solutions (SMS).
With the acquisition of BTI, Sandvik further expands its presence in the North American market and strengthens its regional capabilities in the component manufacturing value chain. The integration of BTI offers synergy potential, by optimizing materials sourcing and increasing the rate of locally produced tungsten metal powder, through its facility in Depew, NY, US. This will complement Sandvik’s already existing production of similar products at Wolfram in St. Martin, Austria.
“With the acquisition of BTI we take an important step in our strategic ambition to strengthen our presence in the North American market. BTI will enhance our regional capacity to produce tungsten powder locally in US, which will improve our competitive position,” says Stefan Widing, President and CEO of Sandvik.
“With BTI we will be able to better meet the customer demand which will give us great opportunities in North America. BTI’s contract for clean hydropower from the Niagara Power Project will also enable us to manufacture tungsten in a more sustainable way,” says Nadine Crauwels, President of Sandvik Machining Solutions.
BTI was established in 1987, has 48 employees and is headquartered in Depew, New York. In 2022, the company generated revenues of about SEK 333 million. The impact on Sandvik’s EBITA margin will be limited. Impact on earnings per share will be accretive. The parties have agreed not to disclose the purchase price. The transaction is expected to close in the fourth quarter of 2023.
Stockholm, October 26, 2023
Sandvik AB
For further information, contact Louise Tjeder, VP Investor relations, phone: +46 (0) 70782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 (0) 70721 1008.
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SOURCE Sandvik
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