Swedish engineering giant Sandvik has agreed in principle to acquire German firm Gerling GmbH, a precision tube engineering company serving a wide range of markets—including hydrogen production—in the rapidly expanding sector.
Hydrogen refueling stations are equipped with high-pressure control technology as part of the solution. Tube, a division of Sandvik Materials Technology, will be reporting on the company.
“With this acquisition, Sandvik Materials Technology continues to strengthen its position by increasing its exposure to growing industries with high potential, an important step to become a well-positioned separately listed company,” says Stefan Widing, President and CEO of Sandvik.
In the hydrogen refueling station market, the merger of Sandvik Materials Technology and Gerling will add engineering expertise and capabilities. Mobile hydrogen refueling stations will be supported by a flexible, on-site and digitally connected platform that will help expand the global market for the co-created mobile tubing container solution. In addition, a strong position in high precision tubing for medical applications will be obtained by utilizing Gerling’s unique capabilities in tube manufacturing technology in conjunction with SMT’s medical product portfolio.
“We will take positions where we can capitalize on the energy transition towards more renewable energy sources. The acquisition of Gerling is giving us capabilities to accelerate growth in innovative hydrogen solutions. We already have a successful partnership with Gerling and we will continue to solve critical industry challenges together,” says Göran Björkman, President of Sandvik Materials Technology.
With a workforce of approximately 75, Gerling GmbH is based in Hörste, Germany. Sandvik Materials Technology’s EBIT margin in 2020 is expected to be approximately SEK 90 million for Gerling GmbH. The purchase price has been kept secret by the parties involved. A negative impact on Sandvik’s earnings per share is expected at first.
According to the agreement, the transaction will close in the first quarter of 2022.
