Feb 24 (Reuters) – Swedish engineer Sandvik is to sell its medical technology business to private equity-owned Orchid Orthopedic Solutions for an undisclosed sum, as it further streamlines its business.
“The divestment of Sandvik Medical Solutions is in line with our strategy to exit operations outside of the defined core businesses,” Anders Thelin, president of Sandvik’s Venture business area, said on Friday.
Last year, Sandvik said it would consider selling its non-core Medical Solutions business, which makes medical implants and orthopaedic and dental instruments, as it sought to boost profitability under its new chief executive, Olof Faxander.
The Medical Solutions business employs around 550 people and had sales of about 600 million Swedish crowns ($90 million) last year. Orchid is owned by private equity firm Altor’s Fund III.
Reuters reported in September that Altor was eyeing the medical business of Sandvik, whose main products are construction and mining equipment and industrial tools, with the business expected to fetch around $100 million.
Sandvik said it expected the sale to be concluded in March. ($1 = 6.6400 Swedish crowns) (Reporting by Niklas Pollard; Editing by Dan Lalor)