Valmet acquires industrial valve company Severn Group for $480 million
2026-07-02 15:51
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en.Wedoany.com Reported - Valmet has completed the acquisition of Severn Group, an industrial valve company. Severn Group specializes in flow control solutions for severe service conditions, comprising three divisions: Severn Glocon, ValvTechnologies, and LB Bentley. The acquisition was announced on December 22, 2025. Severn's technical capabilities and customer relationships will strengthen Valmet's Process Performance Solutions business segment, which currently accounts for nearly half of Valmet's profitability. This acquisition also accelerates Valmet's growth beyond its traditional core biomaterials business.

Thomas Hinnerskov, President and CEO of Valmet, stated that this is a significant milestone in executing Valmet's "Lead the Way" strategy, strengthening the Process Performance Solutions business segment and expanding the flow control business. Severn enhances Valmet's business in three ways: adding new accessible markets in refining, energy, and metals; bringing an installed base that can unlock aftermarket potential through Valmet's lifecycle service model; and expanding severe service flow control technology. Approximately 950 new colleagues have joined Valmet, and their expertise and capabilities help solidify Valmet's position as a strategic partner.

Severn will be integrated into Valmet's Flow Control business area to enhance Valmet's position as a leading supplier of mission-critical valves and valve automation solutions for the global process industry. This acquisition expands Valmet's flow control portfolio, supporting customers in the global energy transition. Combining Severn's expertise in the most demanding applications, Valmet's Flow Control business area serves a broad customer base across the oil and gas value chain, as well as in chemicals, renewable energy, power generation, biomaterials, mining, metals, and subsea applications.

Simo Sääskilahti, Executive Vice President of Valmet's Flow Control business area, stated that Valmet's valve solutions and Severn's application knowledge complement each other, creating a unique offering for severe service flow control, which is particularly critical for the energy sector. The combined capabilities help support customers in ensuring the availability of energy and critical raw materials while advancing the transition to a more sustainable and resilient energy system.

Salil Oberoi, Partner at Bluewater, expressed pleasure in transferring ownership to the Valmet team after building Severn into a world-class organization. Valmet's global reach and customer channels provide a platform to support Severn's next growth phase. This transition reflects their commitment to the energy-to-industry strategy and values the collaborative process with the entire Severn team.

Severn Group achieved net sales of approximately €215 million in 2025, with an EBITDA margin of about 16%. The transaction is valued at $480 million on a cash-free, debt-free basis (approximately €410 million based on exchange rates at the time of the December 2025 announcement). Valmet is a global technology leader serving the process industry, with total net sales of approximately €5.2 billion in 2025. Headquartered in Espoo, Finland, Valmet employs 18,500 professionals in approximately 40 countries worldwide. Valmet's shares are listed on Nasdaq Helsinki.

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