By Dominic Chopping
STOCKHOLM--Sandvik's (SAND.SK) Materials Technology unit has
sold its distribution business in Australia and New Zealand to
steel distributor Vulcan Steel for an undisclosed price, it said
Tuesday.
The Swedish engineering group said invoiced sales for the
divested business were about SEK930 million in 2013 with an
operating margin of 7%.
"The divested operations involve a limited linkage to the rest
of the business area, with a very small part of the total sales
coming from Sandvik's own production system," it said. "The
divestment does not impact the other Sandvik business areas in
these countries."
As part of the transaction, a distribution agreement has been
put in place between Sandvik and the new owner, to enable continued
deliveries of Sandvik Materials Technology products to the
region.
The transaction is expected to be finalized in October 2014.
-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@WSJNordics
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