Pontos and Finnish Industry Investment to develop Valmet Automotive with Metso; First step is the acquisition of Karmann´s convertible roof business
Metso Corporation´s press release on November 5, 2010 at 9:15 a.m. local time
Metso and the Finnish investment companies Pontos Group and Finnish Industry
Investment Ltd have agreed that both investment companies will each invest
through a directed share issue EUR 10 million into Metso´s fully-owned
subsidiary Valmet Automotive, thereby giving them a total shareholding of 34% in
Valmet Automotive. At the same time, Metso will strengthen Valmet Automotive´s
capital base by converting an internal loan of about 10 million euros into a
subordinated loan. In the same conjunction, it has been agreed that Valmet
Automotive´s key management will be committed to Valmet Automotive through a
separate directed share issue under which the management will invest into Valmet
Automotive, too. Metso´s share of ownership then will be after these
arrangements in excess of 60%. The owners will not exclude new investors from
joining in.
"In addition to contract manufacturing, Valmet Automotive has successfully
focused its operations in recent years on engineering services for the car
industry and on electric cars. The company´s current production portfolio
includes three next-generation electric cars, and about 25% of the company´s net
sales this year come from the sales of engineering services. We see interesting
development opportunities in Valmet Automotive´s operations; however, since the
automobile industry is not one of Metso´s core customer industries, we have
decided to allow outside investors to participate in the development of Valmet
Automotive´s business, to strengthen the company´s capital base in partnership
with them and in this way find new paths to develop the company, " says Olli
Vaartimo, Chairman of the Board of Valmet Automotive and CFO of Metso.
It has been agreed that as the first step Valmet Automotive will acquire
Karmann´s convertible roof business in Germany and Poland. Valmet Automotive and
the administrative receivers of Karmann´s roof business have signed an agreement
regarding the convertible roof business. The parties have agreed not to disclose
the price of the transaction.
The completion of the transaction is subject to the receiving of the necessary
regulatory permits. Valmet Automotive estimates that the acquisition could be
finalized and the business transferred to its ownership by the end of this year
at the latest.
Lesen Sie auch
The acquisition complements Valmet Automotive´s service offering in line with
the company´s strategy in convertible engineering and manufacturing services and
particularly in component manufacturing. Completion of the acquisition would
make the roof business Valmet Automotive´s fourth business line in addition to