InterChina Partners advises Sandvik on acquisition of Chuzhou Yongpu Carbide Tools – completing another key transaction in the advanced manufacturing sector in 2021

InterChina Partners, the leading local premium & mid-market investment banking advisor based in China, is pleased to announce the acquisition of Chuzhou Yongpu Carbide Tools Co., Ltd by Sandvik Coromant. The transaction was completed on August 20th 2021.

Sandvik Coromant is the world's leading supplier of cutting tools and services to the metal cutting industry. Sandvik Coromant is headquartered in Sandviken, Sweden and is represented in more than 150 countries with approximately 7,700 employees worldwide. It is a part of Sandvik Machining Solutions within the global industrial group Sandvik.

Chuzhou Yongpu Carbide Tools Co., Ltd is a local premium solid round tools manufacturer with the capabilities covering blanks, cutting tools, reconditioning and coating services. Founded in 2013, Chuzhou Yongpu Carbide Tools Co., Ltd is headquartered in Chuzhou, Anhui Province, China, and employs about 500 employees. It generated revenues of approximately SEK 400 million for the twelve month period Q2 2020 to Q1 2021. It is one of the local premium market leaders in China.

This acquisition is fully aligned with Sandvik Group and Sandvik Coromant strategies to grow the market share in the Solid Round Tools area in China and Asia. Chuzhou Yongpu will continue to operate under its own brand and focus on developing its offerings and market share with the ambition to become the leading local premium provider of solid round tools in China. The transaction is structured with a call option for Sandvik to buy the remaining part in three years’ time.

“The acquisition of Chuzhou Yongpu Carbide Tools Co., Ltd is part of our strategy for our machining solutions business to increase our market share and take a leading position in solid round tools, and at the same time expand further in the Asian market. We are looking forward to welcoming Chuzhou Yongpu Carbide Tools Co., Ltd to the Sandvik Group”, says Stefan Widing, President and CEO of Sandvik.

InterChina’s deal team includes Eduardo Morcillo, Managing Partner, and Delia Zhang, Director.

“We are pleased to have been able to facilitate the combination of Sandvik Coromant and Chuzhou Yongpu,” said Mr. Morcillo. “Yongpu is the ideal platform to increase Coromant’s market share by taking a leading position in the solid round tools market in China”.

InterChina served as Sandvik’s advisor and provided a comprehensive suite of transaction advice including: approaching target’s shareholders, conducting pre-due diligence and target evaluations, negotiations of key terms and definitive agreements, valuations, due diligence coordinations, overall transaction process management and closing supports (including a focused restructuring process).


Sandvik Coromant advised by

InterChina Advisors
Eduardo Morcillo
Managing Partner
Delia Zhang
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