The Austrian abrasives and grinding tool company, Tyrolit, has acquired US firm Bay State/Sterling. Bay State, a manufacturer of precision grinding tools, employs a workforce of 500.
Tyrolit, which i…
The Austrian abrasives and grinding tool company, Tyrolit, has acquired US firm Bay State/Sterling. Bay State, a manufacturer of precision grinding tools, employs a workforce of 500. Tyrolit, which is based at Schwaz and is a subsidiary of the Swarovski glass group, aims to double Bay State“s current annual turnover of US$ 100 million. Tyrolit will merge its own US and Canadian sales subsidiaries into those of Bay State. Managing director Andreas Ludwig declined to disclose the purchase price, which is nevertheless rumoured to be in the region of US$ 50 million. Tyrolit has said that the acquisition of Bay State/Sterling will improve its access to the American market. There are however no plans to relocate production capacity to the United States. Tyrolit will continue to supply the European market from Austria. In December 1996, the company also inaugurated a new plant in Brazil, and is now considering joint ventures in the Pacific region. Together with Diamond Products, which was acquired in 1991, Tyrolit is aiming to generate one third of its turnover in the US by the year 2000. Diamond Products has more than doubled its turnover from US$ 29 million to US$ 62 million since its acquisition by Tyrolit, which is seeking leadership of the world market for abrasives and grinding tools by the beginning of the next century. Tyrolit employs a workforce of 1,150 at its plant in Schwaz and generated 1996 turnover of Sch 3.8 billion. Thanks to the integration of Bay State, turnover is projected to reach Sch 4.7 billion in 1997.