21st century - Acquisitions and divestments


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 summer 2000. The deal was closed after the approval of competition authorities in September, 2001.

» Svedala acquisition

Conversely, the forest machine manufacturer, Timberjack, was sold in April, 2000, to Deere & Company from the USA.

Acquisitions and divestments in 2002-2006

With the acquisitions carried out in recent years Metso Corporation has focused to reinforce Metso Paper's and Metso Automation's product and service offerings.

Metso's divestments have concentrated on non-core businesses. The objective has been to streamline the Corporate structure and strengthen the balance sheet, and improve the profitability.

Strengthen global presence through acquisitions, 2007-2008

In line with the strategy, Metso evaluates mergers and acquisitions to accelerate profitable growth. Metso targets acquisitions that would have a good strategic fit for the company by establishing a stronger presence in certain markets, strengthening services business or enhancing technology offering.

» More information on acquisitions

Metso divested certain parts of the panelboard business, which was part of Metso Paper business area. The divestment is in line with Metso Paper’s strategy to develop profitability.

» More information on divestments

Strong foundation for challenging times, 2008

By 2008, Metso had become Finland’s ninth largest company and 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, the 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.

» More information on acquisitions

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 two billion euros. Close to half of Metso’s orders received in 2009 came from emerging markets, compared to 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.

» More information on acquisitions

Results by working together, 2010

In August 2010, Matti Kähkönen was appointed 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 into Metso’s automotive business, gaining a total shareholding of 34 percent in Valmet Automotive.

» More information on divestments

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 three billion euros, accounted for about 40 percent 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 the Chinese SAC, Guodian Nanjing Automation to support Metso’s strategy in the power automation control systems market in China.

» More information on acquisitions

In December, Metso sold its workshop in Valkeakoski, Finland, with all related equipment and screen basket manufacturing.

» More information on divestments

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 deep 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 percent of Shaorui Heavy Industries, one of China’s leading mid-market crushing and screening equipment producers.

Metso also entered new markets with the acquisition of the South Korean valve manufacturer Valstone.

» More information on acquisitions

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 Chinese manganese steel foundry JX. The acquisition improved Metso's ability to supply wear parts to the mining and construction industry in China.

» More information on acquisitions

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 under the name Valmet Corporation.

In December 2013 Metso concluded an arrangement to drop its holding in Valmet Automotive to approximately 41%. This arrangement ceased Valmet Automotive as a Metso subsidiary. This meant that Valmet Automotive will no longer be consolidated as a separate entity in Metso's consolidated financial statements and is instead reported as an affiliated company.

Last updated: Jan 21, 2014