Sandvik strengthens position in electrical vehicles with acquisition of software supplier esco GmbH

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Oct 26, 2023, 03:28 ET

STOCKHOLM, Oct. 26, 2023 /PRNewswire/ -- Sandvik has signed an agreement to acquire esco GmbH engineering solutions consulting, a German-based supplier of software for power skiving, an important technology within gear machining. Esco's software solutions supports design, production and quality inspection in the main area of gear manufacturing. The company will be reported in Sandvik Coromant, a division within Sandvik Manufacturing and Machining Solutions.

Power skiving is a high-growth premium niche market, with strong underlying drivers such as the increasing electrification in the automotive sector. This shift is changing manufacturing requirements in the gear market, and power skiving offers high productivity and flexibility, and enables reduced cycle times compared to conventional machining methods.

"The acquisition of esco fits very well with our strategic focus to grow within key high-growth industry segments, in this case the area of gear machining for electric vehicles," says Stefan Widing, President and CEO of Sandvik.

Esco, founded in 1993, has around 17 employees and is headquartered in Aachen, Germany. In 2022, the company generated revenues of about SEK 14 million. The impact on Sandvik's EBITA margin and earnings per share will be limited.

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.

The following files are available for download:

https://mb.cision.com/Main/208/3862414/2386646.pdf

Sandvik strengthens position in electrical vehicles with acquisition of software supplier esco GmbH

SOURCE Sandvik