The deal also includes the Flowrox brand. 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,” said Jukka Koskela, president and CEO, Flowrox. “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.”
With the transaction, approximately 50% of Flowrox personnel will transfer to Neles. The acquisition closing is expected to take place in November 2021.
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,” said Olli Isotalo, president and CEO of Neles. “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. 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 EUR, with additional earn-out consideration of up to 3 million EUR.