Valmet Agrees to Acquire GL&V for $113 Million
"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." – Pasi Laine, President and CEO, Valmet.
Feb. 26, 2019 - Valmet today announced that it has entered into an agreement to acquire North American-based GL&V, a global provider of technologies and services to the pulp and paper industry. The enterprise value of the acquisition is approximately EUR 113 million on a cash and debt free basis subject to ordinary post-closing adjustments.
The acquisition is estimated to be completed at the earliest on April 1, 2019.
GL&V 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 percent in calendar year 2018. The acquired operations employ about 630 people of whom approximately 65 percent are in North America and the rest mainly in Europe, South America and India.
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 are not included in the transaction scope.
Pasi Laine, President and CEO of Valmet said that the acquisition is an strong strategic fit and compliments Valmet's technology solutions for the pulp and paper industry.
“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,” Laine said. “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,” Laine added.
GL&V provides technologies, upgrade and process optimization services, rebuilds, and spare parts for the pulp and paper industry globally — especially in the areas of chemical pulping, stock preparation, papermaking and finishing. 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 is a leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. To learn more, please visit: www.valmet.com