Metso came to an agreement with Outotec, a Finnish company, on a merger deal to create a combined company serving the aggregate, minerals and metals industries.
The combined company, comprising Metso Minerals and Outotec but excluding Metso Flow Control, will be called Metso Outotec. Combined, the two had sales in 2018 of about $4.4 billion – and about $4.7 billion when Metso’s recent acquisition of McCloskey is factored in.
Metso Flow Control, meanwhile, will be a pure-play listed entity under the name of Neles with 2018 sales of about $668 million.
“Today is an exciting day as we announce the transformational combination of two great companies and simultaneously create an independent leader in flow control,” says Mikael Lilius, Metso chairman. “The combination of Metso and Outotec is a unique opportunity to deliver significant value for our shareholders with a broad presence across minerals, metals and aggregates value chains and an even stronger platform for growth and innovation.”
Matti Alahuhta, Outotec chairman, also weighed in on the merger.
“This is an industry-shaping combination that joins two uniquely complementary companies,” Alahuhta says. “It builds on Outotec’s leading technology competencies and Metso’s excellent service capabilities.”
To make the merger work, Pekka Vauramo, current CEO of Metso, will become CEO of Metso Outotec. Markku Teräsvasara, Outotec CEO, will be named deputy CEO of Metso Outotec. Eeva Sipilä will become the CFO and deputy CEO of Metso Outotec
The board of Metso Outotec will include board members from both companies.
Metso Outotec’s headquarters will be in Helsinki, Finland, and completion of the merger is expected in the second quarter of 2020. The deal is subject to certain approvals.
The Neles development
Under the name Neles, Metso will continue to operate a separately listed entity focused on flow control. Neles is independent from Metso Outotec.
The Neles headquarters will be in Vantaa, Finland, and Olli Isotalo will become CEO of the company and join Metso’s management team this month.
“I firmly believe that timing is now right to establish a focused standalone flow control company,” Lilius says. “Neles offers an exceptional product portfolio and service offering with best-in-class profitability.”
