February 26, 2019 – Valmet, supplier of technology and automation for the pulp, paper and energy industries, has entered an agreement to purchase North American-based GL&V, a global provider of technologies and services to the pulp and paper industry.
The value of the acquisition is approximately EUR 113 million, and will be finalized at earliest on April 1, 2019.
GL&V (its legal name; the company recently rebranded to GLV) supplies technologies, upgrades and optimization services, rebuilds, and spare parts for the pulp and paper industry globally. The net sales of the acquired operations were approximately EUR 160 million and the EBITA margin was around 11 per cent in calendar year 2018.
The acquired operations employ about 630 people – approximately 65 per cent of them are located in North America and the rest mainly in Europe, South America and India.
The transaction does not include GL&V’s washing, oxygen delignification and bleaching operations with Compact Press, pumps and mixers technology for chemical pulping as well as the related Product Center in Karlstad Sweden.
“The acquisition has an excellent strategic fit – it strengthens Valmet’s global services business, complements our technology offering and builds further our local presence and capabilities especially in North America,” says Pasi Laine, president and CEO of Valmet.
“The combination of Valmet’s global reach and GL&V’s product and services offerings for chemical pulping and paper production form a good basis to create new business opportunities and serve our customers even better. GL&V has a team of experts globally and I want to warmly welcome them to become part of Valmet.”
GL&V’s key locations are in Nashua (New Hampshire), Lenox (Massachusetts), and Hudson Falls (New York) in the U.S., in Trois-Rivières (Quebec) in Canada, in Stockholm, Sweden, in Pune, India, and in Campinas, Brazil.
Valmet’s net sales in 2018 were approximately EUR 3.3 billion. The company, headquartered in Finland, employs more than 12,000 professionals around the world. Valmet estimates that due to the pending acquisition, net sales in 2019 will increase in comparison with 2018 and comparable EBITA in 2019 will increase in comparison with 2018 (EUR 257 million).
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