Valmet signed an agreement with Siemens AG for the acquisition of its Process Gas Chromatography business. The agreement value has been agreed at EUR 102.5 million. The agreement will be executed by April 1, 2024, at the earliest.
Jul 17, 2023
Valmet entered into an agreement with Siemens AG to acquire its Process Gas Chromatography business at a value of EUR 102.5 million, on a cash and debt-free basis subject to customary adjustments. The acquisition is estimated to be completed on April 1, 2024, at the earliest, upon completion of carve-out measures and customary closing conditions.
Siemens AG’s Process Gas Chromatography business is a market leader with its Maxum II Gas Chromatograph platform, Systems Integration, and Customer Services offering. Gas Chromatographs are used to measure the chemical composition of gases and evaporable liquids in all stages of production. With deep customer process knowledge in chemicals, liquefied natural gas (LNG), refining, and biofuels, the business provides critical process insights to support its customers in ensuring and improving quality, sustainability, and safety worldwide.
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In 2022, the business’s net sales amounted to approximately EUR 120 million and pro-forma adjusted EBITDA margin was approximately 10 percent. The business employs around 300 people, and its main locations are in the USA, Germany, and Singapore.
The acquisition is in line with Valmet’s strategy and will further strengthen Valmet’s automation segment and process automation offering with process industry gas chromatograph and process analyzer systems offering. It also strengthens Valmet’s Automation Systems business footprint in North America, Asia-Pacific, and Europe. Valmet and Siemens will work closely together over the coming months to ensure a smooth transition, thereby maintaining a strong customer orientation and operational continuity. The acquired business is planned to be integrated into Valmet’s Automation Systems business line as a separate business unit.
Valmet has in recent years successfully expanded its Automation segment through the merger with Neles in April 2022 and the acquisition of NovaTech’s Process Solutions business in January 2023.
Ms. Emilia Torttila-Miettinen, President of the Automation Systems business line commented, “Siemens’ Process Gas Chromatograph Maxum II products, systems, and services offering compliments Valmet’s existing automation offering, industry reach, and expertise. The Maxum brand is widely known in process industries and the products are used extensively by the world’s leading industrial customers. Also, the large installed base provides further service opportunities and business stability. The business is planned to form a globally lead business unit within the Automation Systems business line and has a joint customer base with Valmet’s Flow Control business line. With this setup, supported by Valmet’s strong functions, we see opportunities for further profitable growth in this business. We look forward to welcoming the new colleagues from Siemens to Valmet.”
Mr. Glen Irving, CEO of Siemens Gas Chromatograph & Integration Business, stated, “Today marks a new chapter in our 60-plus-year history of providing world-class gas chromatography products, solutions, and services to process industry customers around the world. By joining the Valmet team, we are excited to be partnering with an organization that shares many synergies with our Gas Chromatography and Integration business and a clear focus on employees and customers. We all are looking forward to exploring the many positive opportunities this partnership can bring going forward.”