mynth
04/2022

NELES acquired by VALMET

FINLAND Industrial Equipment / Components / Valves, Pumps & Taps EV 1b - 4b EUR

Context

The merger between the two Finnish industrial leaders represents a definitive step in creating a globally dominant platform for process technologies and automation. By integrating a leading flow control specialist as a new business line, the group significantly enhances its multidisciplinary offering to the pulp, paper, and energy industries. The strategic rationale centers on the creation of a unique, end-to-end portfolio that combines process technology, automation, and flow control solutions under a single operational umbrella. This integration allows the group to capitalize on cross-selling opportunities across a vast global installed base and a comprehensive service network. Furthermore, the combination strengthens the organization's technical operational depth in high-growth segments such as renewable energy, green hydrogen, and minerals processing. The partnership is designed to leverage combined research and development capabilities to drive innovation in sustainable technologies and digitalization. This move solidifies the entity's standing as a primary enabler of industrial efficiency and environmental performance, providing the strategic depth required to navigate the evolving needs of the global process industry.

NELES, which reported an EBITDA margin of LOGIN in 2021, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN to the average currently observed in the Industry & Manufacturing sector (11.2x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Neles is a specialized technology organization dedicated to the design and manufacture of mission-critical flow control solutions. The entity’s business model centers on providing industry-leading valves, valve automation solutions, and related services to various process sectors. Its value proposition is built on technical durability and high-performance engineering, facilitating reliable fluid management in demanding environments such as pulp, paper, bioproducts, chemicals, and energy. Strategically, the firm focuses on expanding its footprint into renewable energies, carbon capture, and green hydrogen while maintaining a strong presence in traditional oil and gas and mining segments. By integrating advanced material science, such as metal matrix composites, and additive manufacturing techniques, the organization ensures operational efficiency and sustainability for its global client base. The firm prioritizes lifecycle-focused sustainability, aiming to reduce energy consumption and environmental impact through precise flow regulation and leak prevention.

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Historical Financials (EUR)

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REFERENCES

Valuation range: EV 1b - 4b EUR

Revenue range: 450M - 900M EUR

EBITDA range: 100M - 200M EUR

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of NELES by VALMET are reserved for mynth community members. Register for free to unlock full data.

Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Press release: view release

Acquirer: valmet