Sandvik Divests Additive Manufacturing Unit to Mimir: A Strategic Shift in Metal Powder Production

Problem: Strategic Misalignment and Growth Constraints Sandvik AB, a global leader in industrial technology with 42,000 employees and SEK 121 billion in revenue across 150 countries in 2025, faced a critical decision regarding its Additive Manufacturing (AM) business unit. This unit, specializing in metal powders for additive manufacturing, metal injection molding, and hot isostatic pressing, as well as controlled expansion alloys, was deemed strategically misaligned with Sandvik's core focus on machining, mining, rock excavation, and processing. The AM unit required a level of focused investment and a growth trajectory that a diversified industrial group like Sandvik found challenging to provide.

Solution: Divestment to a Dedicated Owner Sandvik's solution was to divest the AM unit to Mimir, a Sweden-based global investment firm. This decision followed a thorough evaluation of the business portfolio against criteria such as market positioning, growth potential, and capital requirements. The transaction, expected to close in Q3 2026 pending regulatory clearance, aims to position the AM business for its next growth phase under dedicated ownership.

"This divestment is intended to better position the Additive Manufacturing business for its next growth phase, and we believe the new owner will provide the platform and dedicated focus needed to further develop the business towards its full potential," said Stefan Widing, President and CEO of Sandvik.

The divestiture will result in an impairment loss of approximately SEK 230 million, primarily tied to property, plant, and equipment. This loss is classified as an item affecting comparability in Q2 results and carries no cash impact. The business has already been reclassified on the balance sheet as assets held for sale.

Results: Strategic Focus and Market Implications ### Sandvik's Continued Strength Sandvik retains its dominant position in industrial technology, with a sharpened focus on its core areas. The divestiture allows the company to divest from a strategically adjacent but non-core business, enabling it to concentrate on its primary operations.

### Mimir's Strategic Entry For Mimir, the acquisition provides an immediate entry into the metal powder supply chain, a critical component of advanced manufacturing technologies. The acquisition includes established production capabilities and an existing industrial customer base, offering Mimir a solid foundation in the AM market.

### Broader Industry Trends Sandvik's divestment reflects a broader trend in the industrial AM landscape. Large diversified manufacturers are increasingly questioning the competitive advantage of vertical integration in the AM sector. This shift is exemplified by the acquisition of TRUMPF's Additive Manufacturing division by a private equity fund managed by DUBAG Group, which has since rebranded as ATLIX and expanded into a full-spectrum provider of metal 3D printing solutions.

### Strategic Withdrawal Sandvik's multi-year withdrawal from the AM sector, culminating in the Mimir deal, underscores the rapid evolution of the industrial AM landscape. The company had already begun adjusting its strategy in 2024 by exiting its 30% minority stake in BEAMIT and divesting the engineer-to-order business DWFritz Automation, narrowing its AM focus to metal powders alone.

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