Ashok Piramal group to sell Miranda Tools to Sweden's Sandvik1 min read . Updated: 19 Jun 2020, 10:05 AM IST
- The acquisition enhances Dormer Pramet’s, an arm of Sandvik, product offerings and will improve its presence in key markets such as India, China and Southeast Asia
MUMBAI: The Ashok Piramal group has signed an agreement to sell its high-speed steel cutting tools business to Dormer Pramet, a subsidiary of Sweden's Sandvik Machining Solutions, the two firms said in a statement.
Miranda Tools has a significant market share in high-speed steel cutting tools business in India. Financial details of the transaction were not disclosed.
"The acquisition is aligned with Sandvik Machining Solutions’ focus on strengthening our round tools offer whilst also adding greater production capacity and flexibility to support long-term growth", said Lars Bergström, president of Sandvik Machining Solutions.
The acquisition enhances Dormer Pramet’s product offerings and improves its presence in key markets such as India, China and Southeast Asia via Miranda Tool’s distribution network and manufacturing facilities, the statement said.
“Miranda remains a very well recognised industrial products brand and has been a strong performer for the Ashok Piramal Group over the years. As we go about re-aligning the group’s businesses, we see a great fit for Miranda within Sandvik and this will help the Miranda management team further grow and strengthen the business," said Nandan Piramal, managing director (MD) of Miranda Tools.
The transaction is expected to close by the third quarter of calendar 2020.
For the year 2019, Miranda Tools had recorded a revenue of around 200 million SEK, or Swedish krona, (approximately $21 million), the statement said.
Investment bank, Lincoln International, advised Miranda Tools on the transaction.
“Both parties’ commitment to execute this transaction within the backdrop of the covid-19 pandemic reflects strongly on the strategic fit between Sandvik and Miranda Tools’ businesses and also the continued interest of global buyers looking at strong manufacturing businesses in India," said Preet Singh, MD and head of Industrials in India, Lincoln International.