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Walter, a division within Stockholm, Sweden-based Sandvik Machining Solutions, has reached an agreement to acquire the privately owned Cleveland-based company Melin Tool Co., a manufacturer of solid carbide tools. The acquisition is expected to further strengthen Walter's round tool offering, especially for the aerospace industry and the U.S. channel partner market.

"By this acquisition we will further strengthen our round tools offering which is in line with Sandvik Machining Solutions' growth strategy," Sandvik Machining Solutions President Lars Bergström said in a statement.

Walter President Richard Harris added: "I am very pleased that we have reached an agreement to acquire Melin Tool Company as it increases our market presence, and has a strong innovation focus and high service level that is aligned with Walter's approach to doing business.”

In the 12-month period ending September 2019, Melin Tool Co. generated revenue of $22 million with 100 employees.

The parties have agreed not to disclose the purchase price. The transaction closed on Dec. 31. The deal is neutral to Sandvik earnings per share from the start.