Oerlikon has signed an agreement to acquire Primateria, a provider of surface engineering services in Sweden. The acquisition will extend and improve Oerlikon Balzers’ technologies in pre- and post-treatments and enlarge its portfolio for surface treatments.
Primateria, a Swedish company founded in 2004 by Mats Larsson and Rickard Gåhlin, specialises in providing pre- and post-treatment solutions for tool optimisation.
The company currently has 15 employees. The acquisition is the next step in Oerlikon Balzers’ strategy to grow in the gear cutting market and to improve the level of its service to customers. With Primateria’s expertise and services, Oerlikon Balzers has enlarged its footprint in Sweden and will be able to provide even greater know-how and a broader portfolio of surface treatments to its customers worldwide. The bundled offerings will first be rolled out in Sweden and later on a global scale.
The acquisition was signed and closed on September 29, 2017. Through the acquisition, Primateria will become part of a global market player in surface solutions, enabling it to strengthen its market share and presence worldwide, particularly for gear cutting applications.
All day-to-day operations in existing locations, as well as business and cooperation with customers and partners of Primateria will continue as usual and as a part of Oerlikon Balzers. Both parties have agreed not to disclose the purchase price.
“Primateria has an excellent standing in the market and offers unique and innovative pre- and post-treatment solutions to its customers in Sweden, based on strong know-how and experience in tribology. As a highly specialised service company in the gear cutting tools market, Primateria will further strengthen our position in the Nordic area with its expertise. This acquisition allows us to accelerate the expansion of our competence globally and will help us to further improve the performance of our service solutions and raising the quality of our coatings,” says Marc Desrayaud, Head of Oerlikon Balzers Industrial Solutions.
Independently approaching the market in Sweden for Oerlikon Balzers and Sandvik AB
Prior to this acquisition, Oerlikon Balzers and Sandvik AB have amicably decided in August to discontinue their joint venture after nearly 30 years of close cooperation and to operate independently in the Swedish and Finnish markets. Therefore, the former Oerlikon Balzers Sandvik Coating AB is now fully owned by Oerlikon Balzers, having taken over all Sandvik’s share of the joint venture (49 %).
Following the shift and changes in the cutting tool market in Sweden and Finland, it has been decided that this is best strategy going forward. Oerlikon Balzers will be further strengthening its presence in the attractive and high-growth markets of forming tools and the precision components, regarding both as segments of high growth potential.
“We will continue to closely cooperate with Sandvik in the Nordic region and around the globe,” says Marc Desrayaud. “At the same time, Oerlikon Balzers will be able to execute its own strategy in Sweden and Finland, for example, in fully leveraging the top-line synergies from the acquisition with Primateria.”