The Board of Directors of Metso Corporation has completed a strategy study and concluded that, going forward, a demerger would offer the best potential for its pulp, paper and power businesses (new parent company for this will be named Valmet Corporation), as well as its mining and construction and automation businesses to utilize their respective strengths in their customer industries faster and more efficiently. Financing arrangements for Valmet are in place.
Both new entities would be globally leading companies in their respective markets and the next steps in the strategic development of the two companies would be taken more efficiently, enabling more focused and crystallized strategies and operations. The increased management- and board-focus should also help the two independent companies in achieving stronger growth and improved profitability. This is also expected to result in increased value for shareholders, as both companies would have their own distinct characteristics and investment profiles.
In approving the demerger plan, the Board of Directors has sought to ensure the strong financial position for both Valmet and Metso. Metso Corporation retains total assets of EUR 4,005M, total equity of EUR 1,362M, a gross debt of EUR 1,095M, a net debt of EUR 388M, net sales of EUR 4,499M and EBITA before non-recurring items of EUR 496M. Valmet Corporation retains total assets of EUR 2,637M, total equity of EUR 865M, a gross debt of EUR 195M, a net debt of EUR -72M, net sales of EUR 3,005M, and EBITA before non-recurring items of EUR 192M.
