Metso Corporation has finalized the divestment of Metso Drives to private equity investor CapMan following the regulatory approvals. Metso Drives is a manufacturer of mechanical power transmission equipment. Metso Drives Oy and its foreign subsidiaries have been transferred to the ownership of the funds managed/advised by CapMan on April 8, 2005. The debt-free price of the divestment is about EUR 98 million. Metso and CapMan reached an agreement of the sale in March 2005.
Related to the divestment of Metso Drives, Metso will book a tax-free capital gain of approximately EUR 18 million in the second quarter. In accordance with IFRS, the capital gain will be reported as part of Discontinued operations line, below the net result of Continuing operations. The 2005 net result of Metso Drives till the finalization of the divestment will be reported under the same line.
The biggest growth potential for Metso Drives, which was a part of Metso Ventures business area, is in the wind turbine sector and other sectors, which are not part of Metso's core businesses.
In 2004, Metso Drives' net sales were EUR 157 million. It employs about 890 people in Finland, Germany, Canada, the United States, and Sweden.
Metso is a global technology corporation serving customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. In 2004, the net sales of Metso Corporation were approx. EUR 4 billion, and it has some 23,000 employees in more than 50 countries. Metso's shares are listed on the Helsinki and New York Stock Exchanges.