Sandvik Acquires Thermaltek
In the world of metallic heating elements the name Kanthal is one which everybody recognizes and this press release emphasizes that. This acquisition shows that the company is very serious about growing their presence in North America and adds on to a previous acquisition, that of Custom Electric in Wixom, Michigan back in 2018. We understand that the Thermaltek name will continue as it is so well recognized. We at “The Monty” had the privilege of visiting Kanthal in Sweden a couple of years ago and we have a photo to prove it (below).
“Sandvik acquires privately owned Thermaltek Inc., a manufacturer of high temperature furnace systems and metallic heating elements headquartered in North Carolina, USA. “Through this acquisition we add further strength to our leading position in industrial heating, a strategically important growth area for our Kanthal division within Sandvik Materials Technology., says Göran Björkman, President, Sandvik Materials Technology. “This acquisition is yet another important step for Kanthal to expand its global offering of sustainable industrial heating. I am pleased to welcome all employees at Thermaltek into the Kanthal family”, says Nicklas Nilsson, Vice President, Kanthal. In the 12-month period ending in September 2019, Thermaltek generated revenues of 13 million USD with its 30 employees and strong sales network in North America. Thermaltek will continue to go to market under its own brand. The transaction is closed and Thermaltek will be reported as part of the division Kanthal within business area Sandvik Materials Technology. The parties have agreed not to disclose the purchase price. The deal is neutral to earnings per share from the start.
Sandvik is a high-tech and global engineering group offering products and services that enhance customer productivity, profitability and safety. We hold world-leading positions in selected areas – tools and tooling systems for metal cutting; equipment and tools, service and technical solutions for the mining industry and rock excavation within the construction industry; products in advanced stainless steels and special alloys as well as products for industrial heating. In 2018, the Group had approximately 42,000 employees and revenues of about 100 billion SEK in more than 160 countries within continuing operations.
Kanthal® is a world-leading brand for products and services in the fields of sustainable industrial heating technology and resistance materials. The company is part of the Sandvik Group and has a strong tradition in innovation and extensive investments in R&D.”