Alleima has signed an agreement to acquire the Swedish company Söderfors Steel Operations AB (“Söderfors Steel").
The acquisition will add capabilities in hot rolling of small diameter bars and profiles to expand the offering of advanced materials for the Medical and Aerospace segments. The company will be reported within the Tube division.
“Important drivers of our profitable growth strategy include winning business and market shares within the fast-growing Medical and Aerospace segments. The acquisition of Söderfors Steel allows us to further widen our offering in these segments by adding complementing capabilities, enabling expansion to many new product applications within attractive niches. I welcome Söderfors Steel to our Group”, says Göran Björkman, President and CEO of Alleima.
The acquisition will provide Alleima with capabilities to manufacture bars with a diameter less than 80 millimeters in high performance materials as nickel base alloys and remelted stainless steel. Currently, Söderfors Steel is a subcontractor to Alleima and other customers. By adding these capabilities, Alleima will be able to manufacture small diameter bars in-house, an important ability for the positioning and growth in medical as well as aerospace applications.
The production facility and head office of Söderfors Steel is located in Söderfors, Sweden, with approximately 50 employees. In 2022 Söderfors Steel had revenues of approximately SEK 145 million and an EBIT margin neutral to the Tube division. Impact on earnings per share will be accretive from the start. The parties have agreed not to disclose the purchase price. The transaction is expected to close during the first half of 2023.
www.alleima.com
