$5B merger between Shrewsbury manufacturer and Finnish supplier postponed
Photo | Courtesy of Neles Corporation
An ongoing merger between Neles Corporation and Valmet Oyj projected to be completed in April 2022.
An ongoing merger between valve manufacturer Neles Corporation, which has a facility in Shrewsbury, and Valmet Oyj, a technology developer in Finland, which was expected to be completed in January has now been postponed to April due to lengthy regulatory review processes.
Announced in July and approved in September, the merger would expand the two companies’ global reach and unique offerings. The combination is expected to generate annual run-rate synergies of approximately $28 million of which approximately 60% are expected to be achieved by 2023 and approximately 90% by 2024, according to a July press release.
Neles will be absorbed into Valmet under the company name Valmet Oyj and will also remain on Nasdaq Helsinki Ltd.
In 2020, the companies had combined net sales of $4.9 billion and an international workforce of 17,000 professionals.
Upon the completion of the merger, Neles shareholders will receive 0.3277 new shares in Valmet for each share they hold in Neles as part of the merger consideration.
Pasi Laine, president and CEO of Valmet will retain his leadership positions once the companies are officially combined.
“The Combined Company will have solid business fundamentals, a strong financial profile, attractive growth potential and estimated synergies contributing to the enhanced shareholder value,” Laine said in the press release.
CORRECTION: A previous edition of this article listed Neles USA, Inc. as part of a merger with Valmet Oyj. This information was incorrect, Neles Corporation will be absorbed into Valmet Oyj.
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