Metso Minerals and Outotec generated combined sales of €3.9 billion ($AUD6.2 billion) in 2018-19. This figure rises to €4.2 billion ($AUD$6.7 billion) when accounting for Metso’s recent acquisition of Canadian mobile screening and crushing equipment manufacturer McCloskey International.
The new entity Metso Outotec is expected to become a leading supplier of process technology, equipment and services across the minerals, metals and aggregates industries. The deal excludes the Metso Flow Control division, which will become a separately listed equipment and services company called Neles.
{{quote-A:R-W:175-I:2-Q:“This is an industry-shaping combination that joins two uniquely complementary companies” -who:Matti Alahuhta, Outotec chairman}}“This is an industry-shaping combination that joins two uniquely complementary companies,” Outotec chairman Matti Alahuhta said. “It builds on Outotec’s leading technology competencies and Metso’s excellent service capabilities.”
Metso Outotec will be based in Helsinki and combined will employ about 15,600 people. Metso shareholders will own 78 per cent of the combined company, while Outotec shareholders will secure a 22 per cent stake.
Following the announcement, shares in Outotec rose 19 per cent, while Metso’s increased five per cent on the Helsinki bourse.
McCloskey acquisition
Metso CEO Pekka Vauramo said the merger was a unique opportunity to create value for its customers, employees and partners worldwide.
“Metso Outotec will have capabilities that will enable us to drive sustainable growth, while providing our customers with high quality technology, equipment and services that will ultimately improve their businesses,” he said. “We will have an extensive global presence, complementary offering, strong services and a large installed base. We also have excellent people – the best talent in the industry.”
The Metso acquisition of McCloskey on 10 June is expected to complement Metso Outotec’s business profile, expanding the aggregates business and strengthening the customer reach, particularly to general contractor customers. In the 12-month period ended 30 September, 2018, McCloskey International had sales of €308 million ($AUD496 million).
The Metso Outotec transaction is scheduled for completion in the second quarter of 2020, subject to anti-trust body approvals.
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