Press Release by Valmet Oyj – December 22, 2025, at 10:00 (EET)

Valmet has signed an agreement to acquire Severn Group (“Severn”) – a reputable and long-standing industrial valve company – from Bluewater, a UK-based private equity firm. The transaction includes all three of Severn’s business units: Severn Glocon, ValvTechnologies, and LB Bentley.

Severn has over 60 years of experience providing specialized flow control solutions for the most demanding applications in process industries worldwide. With a strong technological foundation, a broad installed base, and long-term relationships with many leading industrial companies, Severn will support Valmet’s growth strategy while expanding its reach beyond traditional bioproducts.

This acquisition will further strengthen Valmet’s Process Performance Solutions segment and enhance its position as a leading provider of valve solutions, valve automation, and services. Valmet’s flow control solutions – particularly well-known brands such as Neles, Jamesbury, Neles Easyflow, Valvcon, Stonel, and Flowrox – currently serve key industries including refining and petrochemicals, gas and renewables, mining, and metals. In 2024, net sales in this segment amounted to EUR 791 million.

Thomas Hinnerskov, President and CEO of Valmet, stated: “This acquisition marks an important step in executing Valmet’s Lead the Way strategy, strengthening our Process Performance Solutions segment and expanding our flow control business. With recognized expertise in demanding process applications, Severn is a strategic fit for Valmet. This transaction clearly demonstrates our commitment to delivering sustainable value to customers throughout the lifecycle of their operations. We are delighted to welcome Severn’s experienced team to Valmet.”

Simo Sääskilahti, Executive Vice President of Valmet’s Flow Control business line, commented: “Valmet’s existing valve technologies and Severn’s expertise complement each other effectively, creating a stronger foundation for ensuring process reliability throughout the lifecycle for both Valmet and Severn customers. This combination unlocks significant synergy potential through a broader solution portfolio, expanded market reach, and enhanced services across Severn’s installed base, leveraging Valmet’s global network and capabilities.”

Perttu Louhiluoto, CEO of Severn, said: “We are honored to have Valmet as our new owner and look forward to continuing to build on the strong foundation established over the years. Under Bluewater’s strategic guidance, Severn has evolved from a UK-based energy sector manufacturer into a global industrial enterprise with a clear international presence. Joining Valmet will accelerate our growth, expand into new markets, and deliver greater value to customers worldwide.”

Severn’s net sales in 2025 are estimated at approximately EUR 215 million, with an EBITDA margin of around 16%. The company currently employs about 950 people, with manufacturing operations primarily in the UK, the US, and India. Severn Glocon and ValvTechnologies focus on valve solutions for severe service conditions in industries such as refining, petrochemicals, mining, power generation, and upstream oil and gas. LB Bentley is recognized as a market leader in high-quality subsea valves.

The transaction value is USD 480 million on a debt-free, cash-free basis (equivalent to approximately EUR 410 million at current exchange rates), payable in cash upon completion. Valmet has signed financing agreements with Danske Bank A/S and OP Corporate Bank to secure funding for the acquisition. At the end of Q3/2025, Valmet’s financial leverage ratio stood at 38%. Following completion, the ratio is expected to increase by approximately 15 percentage points, still in line with Valmet’s 2030 financial target of below 50%.

The transaction is expected to be completed in Q2/2026, subject to customary closing conditions.

About Valmet

Valmet is a leading global technology company serving process industries. The company works with customers throughout the lifecycle of their products, providing advanced technologies and services, automation solutions, and flow control. With over 225 years of industrial experience and a team of more than 19,000 professionals working closely with customers, Valmet is strongly positioned to drive industries toward a renewable future.

In 2024, Valmet’s net sales amounted to approximately EUR 5.4 billion. The company’s headquarters are located in Espoo, Finland, with experts in around 40 countries worldwide. Valmet’s shares are listed on Nasdaq Helsinki.