Jan 15, 2015. /Lesprom Network/. Valmet Corporation and Metso Corporation have signed an agreement on the sale of Metso's Process Automation Systems business to Valmet. The enterprise value of the acquisition is Euro 340 million. The acquisition will be financed with committed long-term financing. It is estimated that the acquisition will be completed by April 1, 2015, as the company said in the press release received by Lesprom Network.

The acquired operations supply process automation and information management systems and related applications and services to the pulp, paper, energy and other process industries. The purchased operations employ about 1,600 people. Net sales for 2013 amounted to approximately Euro 300 million.

As a result of the acquisition, Valmet will become a stronger and unique technology and services company in its field, with a full automation offering. The acquisition strengthens Valmet's competitiveness by combining paper, pulp and power plant technology offering, services, process know-how and automation into one customer value-adding entity.

Net sales of the Process Automation Systems business is approximately Euro 300 million, of which Valmet has accounted for approximately 10%. Therefore the acquisition increases the share of stable high-margin business of Valmet's net sales by approximately Euro 270 million.

Process Automation Systems has a solid financial track record, with slight growth and relatively stable margins during the last 10 years. EBITA margin (earnings before interest, taxes and amortization) for Process Automation Systems has been approximately 10-12%.

Valmet Corporation is a leading global developer and supplier of services and technologies for the pulp, paper and energy industries.