Acquisitions and divestments have shaped the corporate structure in 1999–2001
The roll cover division and services business assets of Beloit, the American paper machine manufacturer, were acquired in 2000 to strengthen Metso's position in the paper machine service and rebuild markets.
A cash offer was made to acquire Svedala Industri AB, a Swedish company manufacturing rock and mineral processing equipment, in the summer of 2000. The deal was closed after the approval of competition authorities in September 2001.
The forest machine manufacturer, Timberjack, was sold in April, 2000, to Deere & Company from the US.
Acquisitions and divestments in 2002–2006
With the acquisitions carried out during these years, Metso Corporation focused on reinforcing Metso Paper's and Metso Automation's product and service offerings.
Metso's divestments concentrated on non-core businesses. The objective was to streamline the corporate structure, strengthen the balance sheet and improve profitability.
Strengthen global presence through acquisitions, 2007–2008
In line with the strategy, Metso evaluated mergers and acquisitions to accelerate profitable growth. Metso targeted acquisitions that would have a good strategic fit for the company by establishing a stronger presence in certain markets, strengthening the services business or enhancing its technology offering.
Metso divested certain parts of the panelboard business, which was part of Metso Paper business area. The divestment was in line with Metso Paper's strategy to develop profitability.
Strong foundation for challenging times, 2008
By 2008, Metso had become Finland's ninth largest company. The number of Metso shareholders had increased from 25,000 to 42,000. Metso strengthened its market position and service capacity in growing markets, particularly in India and China. During 2008, expansions to the Ahmedabad foundry and the Bawal factory in India were completed.
Metso acquired the shares of the research company LignoBoost AB from the Swedish STFI-Packforsk AB. The transaction included all the intellectual property rights as well as the LignoBoost brand and the related know-how.
Metso also purchased the Japanese Mitsubishi Heavy Industries' (MHI) paper machinery technology, making Metso the sole owner of Beloit's paper machinery intellectual property globally.
The world shapes us, 2009
In ten years, Metso had evolved into a truly global company with flexible operating models and a services business of over EUR 2 billion. Close to half of Metso's orders received in 2009 came from emerging markets, compared with less than one fifth in 1999.
In 2009, Metso entered into a combination agreement with Tamfelt, one of the world's leading suppliers of technical textile. Subsequently, Metso made a public exchange offer for all of Tamfelt's shares. The acquisition strengthened Metso's services business.
Results by working together, 2010
In August 2010, Matti Kähkönen was appointed as the new President and CEO of Metso Corporation. Previously, Kähkönen had headed Metso's Mining and Construction segment. Kähkönen started in his new position on March 1, 2011.
In November, two investment companies, Pontos Group and Finnish Industry Investment Ltd, invested to Metso's automotive business, gaining a total shareholding of 34% in Valmet Automotive.
Fit for the future, 2011
Despite the global economic uncertainty, Metso's profitability grew steadily in 2011. The services business, with a value of over EUR 3 billion, accounted for about 40% of orders received in 2011.
In August, Metso acquired the mining services business of Copperstate Industrial Services, based in Arizona, USA. The acquired business aimed to strengthen Metso's position as a leading service and technology provider for the mining industry in North America and Mexico.
In August 2011, Metso entered into an agreement with Chinese SAC, Guodian Nanjing Automation to support Metso's strategy in the power automation control systems market in China.
In December, Metso sold its workshop in Valkeakoski, Finland, with all related equipment and screen basket manufacturing.
Our journey continues, 2012
With the services business as the company's top strategic priority in 2012, Metso continued focusing on growing its networks and deepening its understanding of customer processes.
In November, Metso agreed to form a joint venture with China's LiuGong Group to develop the track-mounted crushing business in China. Also in November, Metso acquired 75% of Shaorui Heavy Industries, one of China's leading mid-market crushing and screening equipment producers.
Metso entered new markets with the acquisition of the South Korean valve manufacturer Valstone.
Additionally, Metso consolidated its valve operations in the United States into new premises in Massachusetts and opened a new valve supply and service center in Vadodara, India.
The year of the demerger, 2013
In August 2013, Metso closed the acquisition of the Chinese manganese steel foundry JX. The acquisition improved Metso's ability to supply wear parts to the mining and construction industry in China.
On October 1, 2013, the Extraordinary General Meeting approved the demerger of Metso into two companies. At the start of 2014, Metso Corporation's Mining and Construction business and Automation business formed the new Metso Corporation and Metso's Pulp, Paper and Power business formed a new company named Valmet Corporation.
In December 2013, Metso concluded an arrangement to drop its holding in Valmet Automotive to approximately 41%. This arrangement represented the end of Valmet Automotive as a Metso subsidiary. This meant that Valmet Automotive was no longer to be consolidated as a separate entity in Metso's consolidated financial statements and was instead reported as an affiliated company.
On January 15, 2015, Metso entered into an agreement for the sale of its Process Automation Systems (PAS) business to Valmet. The transaction covers the entire PAS business: automation and information management solutions, analyzers and measurements, and related services. The transaction was completed on April 1, 2015. Read more from our release here.
The divestment is in line with Metso's new strategy announced in July 2014, under which Metso will focus on the product and services businesses for the mining, aggregates, and oil & gas industries. Read more about Metso's strategy here.