HELSINKI, FINLAND -- 09/05/08 --
Metso Corporation Press release on September 5, 2008 at 14:00 a.m.
Finnish time
Metso has sold Metso Foundries Karlstad AB's shares to a financial
investor group which Primaca Group Oy represents. Metso will continue
as a minority owner with a 16.7% share in Heavycast AB - a new
company to which the Primaca Group will transfer the acquired shares.
The value of the transaction is about EUR 15 million and Metso will
book a small tax-free capital gain from the sale.
Over 80% of Metso Foundries Karlstad's production volume goes to
customers outside Metso. The biggest growth potential for the foundry
is in the wind generator sector, which is not part of Metso's core
businesses. Wind generator components currently represent more than
half of the foundry's sales.
Concurrently with the divestment, Metso has made a long-term
partnership and delivery agreement with Heavycast to secure the
long-term supply of castings for yankee cylinders for Metso's tissue
business.
Metso Foundries Karlstad AB, part of Metso Paper, is one of the
leading manufacturers of large, hand-molded iron castings in northern
Europe. Located in Karlstad, the foundry supplies castings for wind
generator components, diesel engine blocks, and yankee cylinders for
paper machines. In 2007, the net sales were roughly EUR 20 million
and the number of employees 120. The employees will continue working
under their existing employment contracts for Heavycast.
Primaca Group is a Finnish partnership specializing in direct private
equity placements mainly in Finland and the Nordic region. Primaca
manages its portfolio companies by actively facilitating the
development work between the owners and operative management.
Primaca's current investment portfolio comprises 16 companies with
combined net sales of EUR 700 million and 2,800 employees. Primaca
has one foundry company in its portfolio at the moment, i.e.
Uudenkaupungin Rautavalimo Oy (URV).
Metso is a global engineering and technology corporation with 2007
net sales of over EUR 6 billion. Its over 27,000 employees in
approximately 50 countries serve customers in the pulp and paper
industry, rock and minerals processing, the energy industry and
selected other industries.
www.metso.com
For further information, please contact:
Anders Björn, President, Tissue machines, Tissue business line, Metso
Paper Karlstad,
tel. +46 54 17 13 38
Copyright © Hugin AS 2008. All rights reserved.
