Vaahto Group Agrees to Sell Project Business to Bellmer
Jan. 16, 2013 (Press Release) - Vaahto Paper Technology Ltd, a company within the Vaahto Group, has on 16 January 2013 entered into an initial agreement for the sale of the Vaahto Paper Technology group's Projects business and the spare part and small projects businesses belonging to its Services business to a company to be incorporated by Gebr. Bellmer GmbH Maschinenfabrik of Germany.
The parties will seek to negotiate the final terms of the transaction so that it can be completed no later than on 27 March 2013.
Vaahto Group and Bellmer GmbH have in connection with negotiating the transaction also negotiated a co-operation agreement, to be entered into by the Projects business and Vaahto Paper Technology's Service business. The Vaahto Service business unit produces technological solutions for maintenance services in the paper, board and pulp industries.
The Projects business has accumulated annual revenues of EUR 17–25 million during the last years, with low profitability. The business unit employs approximately 60 persons in Hollola and 15 persons in Tampere, respectively. The transaction would be realised with a view of seeking to improve the cash flow of the Vaahto Group for the financial year 2013 as well as to implement the strategy outlined by the Board of Directors.
Gebr. Bellmer GmbH Maschinenfabrik is a German family-owned company that produces equipment and services for the paper, board and pulp industries. With this transaction Bellmer continues to strengthen their market presence as well as their product portfolio. Vaahto’s paper machinery business is concentrated on Finland, Sweden, Russia and China. By establishing a strong presence in Finland and Sweden and increasing resources in Russia and China Bellmer forms a good platform for further growth.
Vaahto Group is a globally operating high technology company serving process industry in the fields of pulp and paper machinery and process machinery. In paper technology, Vaahto Group’s core competence lies in paper and board machine rebuilds; roll coating; and servicing and other maintenance, service, and spare parts services for paper machines. The Group’s main customer industries are the paper, board, and pulp industries.
SOURCE: Vaahto Paper Technology Ltd