who owns gws tool group?

“We are grateful for our partnership with the executive leadership team at GWS, notably Rick McIntyre as CEO,” said Randall Hunt, Partner at L Squared. “Rick’s leadership and vision enabled GWS to expand rapidly while creating an unmatched value proposition for GWS customers.”

A cornerstone of the GWS investment thesis was the opportunity to consolidate the fragmented landscape of high-performance cutting tools providers. L Squared was steadfast in the execution of this thesis by supporting GWS’ rapid growth by way of acquisitions and constant investment in world class technology, people and equipment. In the past four years, GWS has consummated ten add-on acquisitions that resulted in the company growing revenue from less than $10 million to approximately $100 million.

“L Squared has been an excellent partner for our rapid growth trajectory,” said Rick McIntyre. “L Squared has provided the necessary resources to achieve our primary objective of becoming one of the premier metalworking companies in the world. I’d like to thank them for the great partnership that has culminated in this outstanding result for all stakeholders.”

L Squared and GWS were advised on the transaction by BlackArch Partners LLC and Vedder Price P.C.

About L Squared Capital Partners

L Squared Capital Partners is an investment firm headquartered in Newport Beach, CA that seeks to make long-term investments in leading growth companies that operate in targeted sectors: Education Technology, Tech-Enabled Services & Software, and Industrial Technology & Services. Our unique investor base of family offices enables us to focus on long-term value creation driven by revenue and earnings growth, not financial engineering or market timing. The principals of L Squared have worked together for over a decade and have over 100 years of combined experience investing in growing private companies. For additional information, please visit www.LSquaredCap.com.

About GWS Tool Group

GWS Tool Group is a US-based, vertically integrated manufacturer of highly engineered custom, standard, and modified standard cutting tools, primarily servicing the aerospace and defense, power generation, automotive and medical sectors. GWS Tool Group has acquired multiple businesses in the course of its growth which now serve as the respective manufacturing divisions for the Company.

About Walter

"With the acquisition of GWS, we take an important step in our shift to growth strategy where we have a clear ambition for our machining solutions business to increase market share in round tools and to enhance our presence in the North American market", says Stefan Widing, CEO and President of Sandvik.

GWS primarily sells made-to-order products, such as polycrystalline diamond tools and taps, which are complementary to Walter's standard product offering. GWS' strong operational presence in the US and speed to market capabilities improves Walter's value proposition and position in the manufacturing of advanced components and light-weight materials, while strenghtening and complementing Walter's current customer end-market exposure.

"We are pleased to add the GWS product portfolio to our existing US offering and become a one-stop shop for round tools for our North American customers. GWS brings us complementary production capabilities and strenghtens our foothold within general engineering and aerospace, while having only a limited, low-single digit exposure to internal combustion engines. With its solid position within custom round tools and strong customer focus, GWS is a great fit for Sandvik Machining Solutions", says Nadine Crauwels, President of Sandvik Machining Solutions.

GWS is headquartered in Florida, USA, and has around 490 employees. For 2021, on a pro forma basis, the Company is expected to have revenues of approximately SEK 875 million. GWS has had strong revenue growth historically, and is expected to grow at a high single digit organic growth rate in the medium term. The impact on Sandvik's EBITA margin and earnings per share will initially be neutral. The parties have agreed not to disclose the purchase price. The transaction is expected to close during the fourth quarter of 2021 and is subject to relevant regulatory approvals.

For further information, contact Louise Tjeder, VP Investor relations, phone: +46 (0) 70782 6374 or Johannes Hellström, Press and Media Relations Manager, phone: +46 (0) 70721 1008.

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https://news.cision.com/sandvik/r/sandvik-to-acquire-us-based-round-tools-manufacturer-gws-tool-group,c3457662

GWS Tool is a vertically integrated manufacturer of custom, standard, and modified standard consumable cutting tools and taps that are used in the aerospace, defense, power generation, automotive, and medical sectors. The company, led by CEO Rick McIntyre, has 490 employees and is headquartered near Orlando in Tavares, Florida.

“L Squared has been an excellent partner for our rapid growth trajectory,” said Mr. McIntyre. “L Squared has provided the necessary resources to achieve our primary objective of becoming one of the premier metalworking companies in the world. I’d like to thank them for the great partnership that has culminated in this outstanding result for all stakeholders.”

Publicly traded Sandvik (NASDAQ: SAND) is a multinational engineering company specializing in metal cutting, digital and additive manufacturing, mining and construction, stainless and special steel alloys, and industrial heating. The company, with annual revenues of more than $9 billion, was founded in Sweden in 1862 and is headquartered in Stockholm.

“With the acquisition of GWS, we take an important step in our shift to a growth strategy where we have a clear ambition for our machining solutions business to increase market share in round tools and to enhance our presence in the North American market,” said Stefan Widing, the CEO and president of Sandvik.

Post-closing, GWS will continue to be led by Mr. McIntyre and will operate as a standalone entity with its own salesforce and brand part of Walter Tools, a division of Sandvik’s machining solutions group. GWS primarily sells made-to-order products, such as polycrystalline diamond (PCD) tools and taps, which are complementary to Walter’s standard metal cutting tools and tooling systems. Like GWS, an earlier acquisition by Walter Tools was the January 2020 buy of Melin Tool Company, a Cleveland-based maker of carbide and high-speed steel (HSS) end mills, drills and countersinks used in the aerospace and medical sector.

“I am very pleased that we have reached an agreement to acquire GWS, as it will significantly increase our presence in the US and strengthen our solid carbide tools offer in this key market,” said Richard Harris, the president of Walter Tools.

GWS Tool was formed by Addison Capital Partners in August 2014 to acquire Florida-based GW Schultz Tool. Addison Capital added on to the business with the buys of Indiana-based CGI Tool (December 2017); Michigan-based Alliance CNC (January 2018); and Massachusetts-based Benchmark Carbide (August 2018). L Squared acquired GWS Tool from Addison Capital in September 2019.

According to L Squared, a cornerstone of its GWS Tool investment thesis was the opportunity to continue the consolidation of the fragmented high-performance cutting tool sector. Under L Squared, GWS Tool closed seven add-on acquisitions which grew the company’s revenue to nearly $100 million. These seven add-ons include Arizona-based Intrepid Tool (January 2020); Illinois-based North American Tool (January 2020); North Carolina-based STF Precision (October 2020); Illinois-based Taurus Tool & Engineering (January 2021); and Illinois-based CJT Koolcarb and its polycrystalline diamond operating subsidiary, GenHam Diamond Tools (April 2021); Canada-based Indexable Cutting Tools (June 2021); and California-based Monster Tool Company (August 2021).

“We are grateful for our partnership with the executive leadership team at GWS, notably Rick McIntyre as CEO,” said Randall Hunt, a partner at L Squared. “Rick’s leadership and vision enabled GWS to expand rapidly while creating an unmatched value proposition for GWS customers.”

Walter has signed an agreement to acquire the U.S.-based GWS Tool Group, a manufacturer of solid carbide endmills and drills as well as HSS taps and PCD products. GWS is focused on highly engineered customized cutting tools for the American market.