The Ashok Piramal Group has agreed to sell its high-speed steel cutting tools business Miranda Tools to Dormer Pramet, a subsidiary of Sweden’s Sandvik Machining Solutions.
Dormer Pramet said in a statement the acquisition boosts the company’s product offering and improves its presence in India, China and Southeast Asia.
“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,” Lars Bergström, president at Sandvik, said in a press statement.
Mumbai-based Ashok Piramal Group has significant real estate interests and owns Peninsula Land, which has been under stress.
“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” Nandan Piramal, managing director at Miranda Tools, said.
Investment bank Lincoln International advised Miranda Tools on the transaction.
The transaction is expected to close by the third quarter of calendar 2020. However, the two firms have agreed not to disclose the deal value.
For the year 2019, Miranda Tools had recorded a revenue of around 200 million SEK, or Swedish krona, (approximately $21 million), the statement said. It had around 580 employees.