Swedish steel and industrial-equipment supplier Sandvik AB (SAND.SK)agreed to sell its process-systems unit to an investment firm controlled by the Wallenberg family for around five billion Swedish kronor ($575.6 million).
The sale by Sandvik is part of management's strategy to focus more closely on making industrial tools and materials.
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"This is an important step in focusing Sandvik on its core businesses," said Sandvik Chief Executive Bjorn Rosengren said on Friday. "The divestment creates additional capacity for growth and expansion of the core business of Sandvik."
The deal is expected to close no later than early 2018 and will generate a capital gain, the company said.
The buyer of the business is Foundation Asset Management AB, a Swedish holding company owned by the three largest Wallenberg foundations: Te Knut and Alice Wallenberg Foundation, the Marianne and Marcus Wallenberg Foundation, and the Marcus and Amalia Wallenberg Foundation.
In 2016, Sandvik Process Systems reported revenues of SEK1.7 billion, representing 2% of Sandvik's total revenues. It employs 600 people.
Write to Dominic Chopping at firstname.lastname@example.org; Twitter: @domchopping @WSJNordics
(END) Dow Jones Newswires
June 02, 2017 04:21 ET (08:21 GMT)