Sandvik Expands Its CAM Solutions Footprint by Acquiring US Resellers and CIMCO's Technology

Sandvik Strengthens Its Position in the CAM Market

In a significant move aimed at bolstering its presence in the Computer Aided Manufacturing (CAM) sector, Sandvik has recently announced the acquisition of three U.S.-based resellers operating within the Mastercam network: Barefoot CNC, CAD/CAM Solutions, and CamTech Engineering Services. Additionally, Sandvik has also taken over the probing technology and post-processing business from CIMCO Group, a Danish software solutions developer specializing in computer-integrated manufacturing technologies.

The resellers offer important services that cater to manufacturing customers primarily located in the Southeast region of the United States. Barefoot CNC operates out of Morganton, North Carolina; CAD/CAM Solutions is based in Monroe, Georgia; and CamTech Engineering Services operates from Port Orange, Florida. The integration of these companies into Sandvik’s operations is expected to enhance both its capabilities in digital manufacturing and its ability to serve a broader customer base.

Stefan Widing, Sandvik's President and CEO, stated, "These acquisitions strengthen our regional presence and our ability to help our customers and support our strategy to grow within digital manufacturing." This move is seen as not just an expansion in terms of geographic reach, but also as a vital step towards enhancing customer support and product offerings in the evolving digital landscape of manufacturing.

The newly acquired probing technology from CIMCO adds to Sandvik’s capabilities, providing a comprehensive probing solution that allows for direct touch probe programming within Mastercam. The associated post-processor technology is vital as it translates Mastercam’s output into machine-specific code, promoting seamless machine operation, effectively bridging software and hardware in manufacturing processes.

Following the acquisition, 18 employees from the acquired companies will join the Mastercam unit. In 2024, these businesses reported a combined annual revenue of approximately USD 6 million, indicating a meaningful addition to Sandvik’s financial landscape. Initial projections following the acquisition suggest a slightly positive impact on Sandvik's EBITA margin and earnings per share, although the exact purchase price has not been disclosed by either party involved.

Overall, Sandvik's strategy is clear: to solidify its position in the CAM market while harnessing digital technologies to improve manufacturing processes. The company aims to leverage these acquisitions not only to enhance its service offerings but also to foster innovation in manufacturing. As digital manufacturing continues to evolve, Sandvik seems positioned to lead the charge in integrating cutting-edge software solutions with manufacturing techniques, an initiative that will likely keep them competitive in the industry.

In summary, as Sandvik embarks on this new chapter, it signifies a strong commitment to not just maintaining its market share, but also expanding into new territories with enhanced technological capabilities. The move represents a thoughtful integration of operations that places a strong emphasis on meeting customer needs while paving the way for future innovations in manufacturing technology.