The SK4 billion (US$473 million) deal is KKR’s first foray into a middle-market industrial business.

For Sandvik, Hyperion’s revenues made up SK3.2 billion (US$378 million), or 4% of its comprehensive total in the last 12 months.

“Hyperion is known for its high-quality, effective products and has a loyal customer following. We see tremendous opportunity to help support the growth of the company and its customers by establishing the business as a standalone entity,” KKR investment team leader Pete Stavros said of the company.

Sandvik said the new owner will support Hyperion’s continued development.

“This agreement is an important step in focusing Sandvik on its core businesses,” president and CEO Björn Rosengren said. “The divestment creates additional capacity for growth and expansion for the core business of Sandvik.”

This transaction is still subject to regulatory approvals and other customary closing conditions, but is expected to close during the first half of 2018.