Finnish company Valmet has successfully finalized the acquisition of Körber's Business Area Tissue, a move that enhances its position in the tissue industry. The completion of this transaction, initially disclosed on July 7, 2023, now solidifies Valmet's presence as a comprehensive provider of process technologies and services for converting tissue jumbo reels into final products.
Tissue Converting, the newly formed business unit within Valmet's Paper business line, is set to leverage the combined strengths and offerings of Valmet and the acquired business. This strategic integration aims to provide the broadest technology, automation, and services portfolio, covering the entire tissue value chain from fiber to finished goods.
Pasi Laine, Valmet's President and CEO, expressed enthusiasm about the acquisition, highlighting its alignment with Valmet's strategic objectives. The addition of Körber's expertise enhances Valmet's capabilities, offering end-to-end solutions that include automation systems and flow control equipment.
Oswaldo Cruz Junior, the Head of Tissue Converting business unit at Valmet, emphasized the significance of this move, marking the beginning of a crucial chapter. Joining forces with Valmet positions the company as a market leader in tissue converting, enabling them to better serve customers as a comprehensive one-stop-shop.
The enterprise value of the acquisition stands at approximately Euro 380 million, based on a cash and debt-free evaluation, with ordinary post-closing adjustments. The completion of the transaction on November 2, 2023, sets the stage for Valmet to realize sales, service, and cost synergies totaling Euro 8 million by the end of 2026.
In Valmet's reporting structure, the process technology segment of the business will be consolidated into the Paper business line, while the services component will be integrated into the Services business line.