Schnitger Corporation

Hexagon completes its transformation

EarningsHexagon is reinventing itself, moving from its legacy as a contract metals manufacturer and producer of valves, antennas and pressure vessels, to a conglomerate focusing on measurement technology. Today, the company said it has sold the last piece of the “old” Hexagon.

Hexagon’s rebuilding started with buying Brown and Sharp in 2001, Leica in 2005, Intergraph in 2010, and a closing number of smaller deals along the way. As the company was buying towards its new identity, it was selling off assets of the old, including Olofström July 2013 and, today, SwePart, the last remaining part of “Other Operations”.

SwePart manufactures custom gearbox housings and transmission parts for the automotive and other industries. In 2013, SwePart had sales €47 million, contributing less than 2% of Hexagon’s revenue. SwePart was sold to Merlinum AB for an undisclosed amount, although Hexagon’s press release says that “the divestment entails a capital loss of approximately €1.5 million.”

I can’t see this having a real impact on Hexagon’s operating businesses since they are run by strong, independent leaders. But CEO Ola Rollén and his corporate team will now be focusing in on measurement technologies — what happens next is bound to be interesting.

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