Neles said that Flowrox's strength in minerals processing applications will improve Neles' offering to the mining and metals markets as the latter company diversifies - it is currently focused on oil and gas and chemicals industries.
"Diversification of our customer industries is a key component of Neles' growth strategy. 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," says Olli Isotalo, President and CEO, Neles.
Neles added that Flowrox's valve and pump businesses had sales of about €30 million last year. The transaction also includes the brand, but Flowrox will retain full ownership of its filtration, environmental technologies, and industrial automation solutions.
The purchase price of the valve and pumps businesses is €40.9 million, payable in cash at closing, with an additional orders received-based earn-out consideration of up to €3 million for a one-year period after closing.
"In recent years, Flowrox's operations have expanded in many areas through product development and acquisitions. 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," says Jukka Koskela, president and CEO, Flowrox.
Earlier this month, Neles agreed to merge with plant technologies and automation systems provider Valmet.