The combined company - comprising Metso Minerals and Outotec but excluding Metso Flow Control - will be named ‘Metso Outotec’. Set to launch in the second quarter of 2020, the new firm had illustrative combined sales of €3.9 billion in 2018 (around €4.2 billion when including the impact of Metso’s recently announced acquisition of
Metso Flow Control will be a pure-play listed entity under the name of Neles , looking to build on 2018 sales of €593 million.
Metso Outotec will leverage the strengths of both companies, including technology and research and development, product and process excellence, scale and global service offering footprint.
The new business, which will be headquartered in Helsinki, Finland, expects to achieve run-rate annual pre-tax cost synergies of at least €100 million, and run-rate annual revenue synergies of at least €150 million, delivering significant value for shareholders.
Metso’s recently announced acquisition of McCloskey International is expected to complement the business profile of Metso Outotec, expanding and strengthening the aggregates business.
Current Metso chief executive officer (CEO) Pekka Vauramo will become Metso Outotec’s CEO. The current CEO of Outotec, Markku Teräsvasara, will become deputy CEO of Metso Outotec. Eeva Sipilä will become chief financial officer (CFO) and deputy CEO of Metso Outotec.
The board of Metso Outotec will include board members from both companies. It is proposed that Metso Outotec’s chairman will be Mikael Lilius and that the vice chairman will be Matti Alahuhta.
The major transaction is unanimously recommended by the boards of Metso and Outotec to their respective shareholders. It is subject to, among other items, approval by a majority of two-thirds of votes cast and shares represented at the respective EGMs of Metso and Outotec. The deal is due to be implemented by way of a partial demerger of Metso. It is also subject to a statutory creditor hearing process of Metso’s creditors.
Metso CEO, Pekka Vauramo, said: “This is a unique opportunity to create value for our customers, employees and partners globally. Metso Outotec will have capabilities that will enable us to drive sustainable growth, while providing our customers with high-quality technology, equipment and services that will ultimately improve their businesses. We will have an extensive global presence, complementary offering, strong services and a large installed base. We also have excellent people – the best talent in the industry. I am therefore eagerly waiting to join with Outotec’s personnel to begin our exciting journey together.”
Outotec CEO, Markku Teräsvasara, said: “The combination of Outotec and Metso marks an important milestone in each company’s history and in Outotec’s strategic development. I am excited about the many benefits that the combination will deliver for customers, employees and ultimately shareholders, with the larger scale and combined strengths of both companies. Outotec has a highly compelling portfolio of technologies and capabilities that will be a key catalyst for unlocking many of these benefits. I look forward to building a great new company together with the Outotec and Metso Minerals employees, as part of Metso Outotec.”