Metso has agreed to sell its Process Automation Systems business to Valmet for € 340 million. Valmet makes equipment for the pulp and paper industries, and was part of Metso until 2013 when the two businesses demerged.
Metso said the divestment was is in line with the new strategy it announced in July last year to focus on products and services for the mining, aggregates, and oil & gas industries. When the strategy was announced, Metso also said it look at the future of its Process Automation Systems business.
The Process Automation Systems serves the pulp, paper and power industries, with a covering automation and quality control systems, analysers and measurements and related services. It has 1,600 employees in some 80 locations around the world and had revenues of € 300 million in 2013.
Matti Kähkönen, president and CEO of Metso said, "We are very pleased to announce this transaction. It is a logical step and an important milestone in implementing our new strategy. We are happy that we could achieve this strategic milestone in a timely manner, thereby allowing Metso to fully focus on growing its core businesses and also minimising the period of uncertainty for the PAS business and people."
The transaction is expected to be closed by April 1 and, is subject to approval by competition authorities. Metso expects to book a capital gain on the deal.