Finland-based Flowrox sold its valve and pump businesses to Neles, another Finnish manufacturer of industrial valves. The deal also includes the Flowrox brand, but it excludes Flowrox’s industrial automation, environmental technologies and filter business, all of which will continue under a new name and brand to be announced later.
“Diversification of our customer industries is a key component of Neles’ growth strategy,” President and CEO Olli Isotalo said. “This acquisition is an excellent fit for Neles as Flowrox is a well-known niche player in flow control within mining and metals with the right offering and very strong competence and knowhow.
“Going forward, we plan to continue developing the transferring businesses as a platform for growing in a strategic focus industry.”
The purchase price of the valve and pump businesses is 40.9 million EUR ($48.3 million), with additional earn-out consideration of up to 3 million EUR ($3.5 million). The acquisition closing is expected to close during November. Approximately 50% of Flowrox personnel will transfer to Neles.