Finnish valve company Neles Corp has signed an asset purchase agreement to acquire Flowrox’s valve and pump businesses.
The businesses design and manufacture valve and pump solutions, including pinch valves, knife-gate valves and peristatic pumps, that are used in mining, minerals processing, metallurgy, construction, energy, environment and chemical industries.
Flowrox’s valve and pump businesses had sales of €30 million in 2020 and employ around 110 people. They have manufacturing in Finland, Australia, South Africa and the US, as well as sales channels in more than 80 countries.
The purchase price of the valve and pumps businesses is €40.9 million, payable in cash at closing, with an additional earn-out consideration of up to €3 million. The acquisition is expected to close in November 2021.
The transaction also includes the Flowrox brand. Flowrox’s industrial automation, environmental technologies and filter businesses are excluded from the acquisition and will continue under a new name and brand that will be announced later.
Neles says that the acquisition of Flowrox’s valve and pump businesses will complement its offering and exposure to the mining and metals industry.
“This acquisition is an excellent fit for Neles as Flowrox is a well-known niche player in flow control within mining and metals and it has the right offering and very strong competence and know-how,” said Olli Isotalo, president and CEO of Neles. “Going forward, we plan to continue developing the transferring businesses as a platform for growth in a strategic focus industry.”
“In recent years, Flowrox’s operations have expanded in many areas through product development and acquisitions,” said Jukka Koskela, president and CEO of Flowrox. “Now it is time to focus. This business transaction will enable us to advance the remaining businesses to the next level. We see Neles as a great partner and a company who can further develop valve and pump businesses.”