SUND Technological China to Acquire 100% Stake in Germany's Levicron for €8.5 Million

Recently, SUND Technology China successfully completed the acquisition of 100% of the shares of Levicron GmbH, a German company, through its wholly-owned German subsidiary. The total transaction value amounts to €8.5 million.

Levicron GmbH, a hidden champion in the field of ultra-precision machining, specializes in products such as ultra-precision machine tool air-floating spindles (with precision up to 0.1 microns), optical machining air-floating spindle systems, nano-level spindle tool holding systems, and spindle dynamic performance testing platforms.

According to reports, Levicron is expected to achieve a revenue of €2.59 million and a net profit of €400,000 in 2024, with its product gross margin maintaining above 45%. Its air-floating spindle technology, known for zero friction, ultra-high speed (up to 150,000 RPM), and sub-micron precision, occupies a technological leadership position in high-end fields such as semiconductor manufacturing and optical component processing.

The Chairman of SUND Technology China stated, "This acquisition achieves three strategic goals: first, acquiring core air-floating spindle technology to fill the domestic gap; second, building a comprehensive oil-free lubrication bearing technology system; and third, opening up the European high-end manufacturing market." After the acquisition, Levicron will continue to operate independently while collaborating with SUND Technology China in many areas, including the joint development of the next-generation magnetic-air hybrid spindle technology, the establishment of a Sino-European R&D center, sharing the global supply chain system, and expanding the Asian high-end customer market.

The acquisition has attracted significant attention within the industry. An expert from the China Machine Tool & Tool Industry Association remarked, "Air-floating spindles are the 'heart' of high-end CNC machine tools. By acquiring this technology, SUND Technology China will make a major leap forward and significantly boost the process of making domestic high-end equipment more autonomous and controllable." It is predicted that the global ultra-precision spindle market will exceed €5 billion by 2026, and this acquisition will open up new growth opportunities for SUND Technology China.

The company revealed that it plans to invest RMB 200 million in the next three years to localize Levicron's technology, with plans to build an ultra-precision spindle industrialization base in Changsha, aimed at assimilating and innovating key technologies.