The Swedish company Sandvik has signed an agreement to acquire a controlling stake in the Chinese company Suzhou Ahno Precision Cutting Tool Technology Co., Ltd. (Ahno) from the current majority owner, Ningbo Baosi Energy Equipment Co., Ltd and related parties. The company will be represented in the Sandvik Machining Solutions segment.
Ahno is a manufacturer of precision cutting tools. The main consumer industries are mechanical engineering and the automotive industry, in which electric vehicles occupy a significant share, as well as medicine.
Ahno will form the basis of a new Chinese division within Sandvik Machining Solutions. The new division will be created after the closing of the transaction. After the deal, Sandvik will own 72.4% of Ahno shares. Previously, the company owned 12.4% of Ahno shares.
The corporate value of the acquired share is 1,456 million yuan (189 million euros), which corresponds to a ratio of 10.9 x EV/EBITDA 2024. The transaction is expected to close in the third quarter of 2024 and is subject to the usual closing conditions.
Ahno was founded in 2002, has about 1,200 employees and is headquartered in Suzhou, China. In 2023, the company's revenue will be about 812 million yuan.
Sandvik is a Swedish technology company headquartered in Sandviken (Sweden). Sandvik manufactures tools and tool systems for metal cutting, equipment, tools and services for the mining and construction industries, etc. The company employs 4.3 thousand employees in 150 countries. The company's trade turnover is 91 billion Swedish kronor.
Ningbo Baosi Energy Equipment Co., Ltd (BSC) is a Chinese company founded in 2005 as a manufacturer of compressor equipment. And already in 2011, the manufacture of vacuum equipment began. Today, Baosi manufactures spiral vacuum pumps, single- and two-stage oil vacuum pumps. The production facilities occupy more than 100,000 square meters, which employ 1300 specialists daily. The production is equipped with the latest equipment from the USA, Germany and Japan. The company has its own R&D center.
