Finland-based Flowrox has sold its valve and pump businesses to Neles - a listed Finnish manufacturer of industrial valves.
Flowrox’s industrial automation, environmental technologies and filter business are excluded from the acquisition and will continue under a new, later to be announced name and brand.
“In recent years, Flowrox's operations have expanded in many areas through product development and acquisitions. Now it is time to focus. This business transaction will enable us to advance the remaining businesses to the next level. We see Neles as a great partner and a company who can further develop valve and pump businesses,” said Jukka Koskela, president and CEO of Flowrox.
With the transaction, approximately 50 % of Flowrox personnel will transfer to Neles.
Acquisition closing is expected to take place in November.
According to Neles, the acquisition will complement the company’s offering and exposure to the mining and metals industry.
“Diversification of our customer industries is a key component of Neles’ growth strategy. This acquisition is an excellent fit for Neles as Flowrox is a well-known niche player in flow control within mining and metals with the right offering and very strong competence and knowhow,” added Olli Isotalo, president and CEO of Neles. “Going forward, we plan to continue developing the transferring businesses as a platform for growing in a strategic focus industry.”
The purchase price of the valve and pump businesses is €40.9 million, with additional earn-out consideration of up to €3 million.