METSO'S OFFER FOR BELOIT'S PAPER MACHINE SERVICE ASSETS ACCEPTED BY THE BANKRUPTCY COURT
The offer by Metso Corporation's fiber and paper technology business area, Valmet, to purchase certain assets of the American paper machine manufacturer, Beloit, has been approved also by the Bankruptcy Court. The decision will be final after 11 days assuming no appeal is filed. The offer included Beloit's roll cover division, paper machine aftermarket business assets and the related paper machine technology. The auction price of the businesses offered was USD 160 million.
This acquisition strengthens Metso's position on the maintenance and upgrading market, which is growing faster than the investment market for new machinery and plants. Metso's growth in this area is supported by its new customer service concept Future Care. Beloit's current installed machinery base provides a strong platform for growth especially on the North American market.
Metso's offer was approved by the Creditor's Committee under Beloit owner, Harnischfeger's Chapter 11 process in January. The deals also requires the approval of the competition authorities. This process is estimated to be completed during the coming few months.
The business in question employ about 800 people in 6 service centers with roll covering capabilities in the USA and France.
Metso Corporation's fiber and paper technology business area Valmet is a world leading supplier of technologies, systems and equipment for the pulp, paper, converting and panelboard industries. In 1998, the business area's pro forma net sales totaled EUR 1.9 billion (FIM 11.6 billion) in 1998 and it had about 10,900 employees.
Metso Corporation which is a global supplier of process industry machinery and systems, was created through the merger of Rauma and Valmet Corporation on July 1, 1999. In addition to fiber and paper technology, Metso's business areas are automation and control technology and machinery. The pro forma net sales of Metso Corporation was EUR 3.7 billion (FIM 22 billion) in 1998 and personnel totaled approximately 23,000. Metso Corporation is listed on the Helsinki Exchanges and New York Stock Exchange.