(Photo: Sandvik Coromant)

SANDVIKEN, Sweden – Sandvik AB, the parent company of cutting tool firm Sandvik Coromant, has reached an agreement to acquire an additional 51 per cent of shares in Precorp Inc., a company based in Spanish Fork, Utah.

The acquisition will give Sandvik will ownership of the comapny, and expected to be concluded by October 1, 2013.  The Swedish comapany has been the minority owner of Precorp since 2008 with 49 per cent of the shares. After the sale Precorp will be consolidated into Sandvik Machining Solutions.

Precorp was founded in 1986 and offers a full line of Polycrystalline Diamond (PCD) and carbide tools including drills, reamers, end mills, port tools, and micro tools for high-speed machining of die cast aluminum, carbide parts, and machining advanced composite materials. The company primarily serves customers in the aerospace, and automotive segments.

In 2012 Precorp had sales of approximately $37 million, and employed roughly 200 people.

The already existing co-operation between Sandvik Machining Solutions and Precorp has led to several new business opportunities. The acquisition of the remaining shares in Precorp is a logical step, and is in line with Sandviks long-term strategy to have full ownership of core assets, says Jonas Gustavsson, President of Sandvik Machining Solutions.

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Through the acquisition, we intend to further develop and strengthen the global business for engineered special diamond and cemented carbide based cutting tools, particularly in the attractive aerospace segment.

Richard Garrick, President of Precorp Inc, said in a statement, I am confident that this acquisition is a good step, both for Sandvik and for Precorp.

Precorps long-term strategy for growth in the aerospace segment is in line with Sandviks strategy and now we will work even more integrated to generate innovative solutions for our customers.