SGS Tool Co. acquired by Kyocera Corp.

Kyoto, Japan – Kyocera Corp. completed a share purchase agreement for the U.S.-based solid tool manufacturing and sales company, SGS Tool Co. and its group companies. Effective May 2, 2016, Kyocera will acquire 100% ownership of SGS Tool, and will rename the company as Kyocera SGS Precision Tools Inc. By incorporating SGS Tool, Kyocera plans to increase sales of cutting tool business in North America by 2.5x by fiscal year ending March 31, 2019.

Currently, Kyocera is expanding its cutting tool business globally with its main lineup of indexable cutting tool products, while SGS Tool is a solid tool manufacturing and sales company developing its business mainly in the U.S. and U.K. with strength in products for the medical, automotive, aerospace, and energy industries.

By incorporating SGS Tool into the Kyocera Group, Kyocera will create a business structure capable of providing total solutions and strengthen its business globally as a comprehensive cutting tool manufacturer.

SGS Tool headquarters will remain in Munroe Falls with manufacturing located in Cuyahoga Falls, Ohio, and Columbia City, Indiana, as well as the U.K. All SGS associates, including manufacturing, sales agents, distribution center, and administrative and executive staff will remain with the new company.

Tom Haag, president of SGS Tool Co., commented don how the sale fit into a long-term strategy for the business and community. “Kyocera’s business model offered many solutions to our business challenges approaching over the next decade. From basic raw material to research and development solutions, the company is well-positioned for the market challenges and innovations of the next decade and beyond”

SGS Tool Co., founded in 1951, is known for solid carbide high performance end mills, drills, stainless steel medical tools, and subsequent PVD coatings.

Kyocera Corp. was founded in 1959 as a producer of advanced ceramics and has become a leading supplier of cutting tools, industrial ceramics, solar power generating systems, mobile phones, printers, copiers, electronic components, and semiconductor packages.

Source: SGS Tool Co.