Finnish company Neles to acquire the valve and pump businesses of Flowrox

Finnish industrial valves specialist Neles is to acquire the valve and pump businesses of the technology company Flowrox, also from Finland.

Neles said the acquisition will complement its current business and increase exposure to the mining and metals sector.

It is expected that mining and metals will see strong short- and mid-term growth for the next decade, driven primarily by the increasing demand for metals, continued ore depletion and underlying investments into more efficient processing.

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With good long-term fundamentals, service intensity and a different cyclical nature balancing out cycles from currently served industries, mining and metals is an attractive industry for Neles. The acquisition, Neles said, will enable it to better leverage growth opportunities in minerals processing applications.

"Diversification of our customer industries is a key component of Neles’ growth strategy. This acquisition is an excellent fit for Neles as Flowrox is a well-known niche player in flow control within mining and metals and it has the right offering and very strong competence and know-how," said Olli Isotalo, President and CEO, Neles.

"Going forward, we plan to continue developing the transferring businesses as a platform for growth in a strategic focus industry," he added.

Flowrox's valves and pumps businesses are part of the Flowrox Group. The businesses design and manufacture valve and pump solutions that are used in a variety of process industries, especially in mining, minerals processing, metallurgy, construction, energy, environment, and chemicals.

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"In recent years, Flowrox's operations have expanded in many areas through product development and acquisitions. Now it is time to focus," said Jukka Koskela, President and CEO, Flowrox.

"This business transaction will enable us to advance the remaining businesses to the next level. We see Neles as a great partner and a company who can further develop valve and pump businesses."

The acquired businesses employ approximately 110 people and have facilities in Finland, Australia, South Africa, and the United States, as well as well-established sales channels in over 80 countries.

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