Valmet has agreed to acquire 22,374,869 shares in the future Neles Corporation from Solidium Oy, representing 14.88% of all Neles’ shares and votes. The transaction between Valmet and Solidium is expected to take place on July 1, 2020.
Neles Corporation is planned to be created in the partial demerger of Metso, in which Metso’s Flow Control business would become the independent Neles Corporation and would continue Metso’s listing on Nasdaq Helsinki. The completion of the partial demerger is currently expected to take place on June 30, 2020 (pending final merger control approvals).
After the partial demerger, Neles will be an independent globally leading diversified valve, valve automation and service company with net sales in 2019 amounting to Euro 660 million and adjusted EBITA margin to 14.6%. Neles’ headquarters are located in Vantaa, Finland and the company has operations in more than 40 countries worldwide with approximately 2,900 employees.
Approximately 70% of Neles’ net sales is recurring business. Neles’ business is well diversified across process industries and regions, with 26% of net sales coming from the pulp and paper industry. Since 2011, Neles’ orders received have grown by approximately 5% annually and the profitability has improved.
The agreed purchase price is Euro 8.00 per share, corresponding to a total transaction value of Euro 179 million at the signing, paid 100% in cash. The price will be adjusted based on Neles’ share price development during certain limited time period after the completion of the partial demerger of Metso. The possible adjustment is paid or received by Valmet in cash. The adjustment agreed is customary and capped, and will not have a material impact on the transaction value.
Valmet will finance the share acquisition with a new loan facility.
Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries.
