Neles has signed an asset purchase agreement to acquire the valve and pump businesses of the Finland-based technology company, Flowrox. The acquisition will complement Neles’ offering and exposure to the mining and metals industry.
The mining and metals market is expected to have strong growth for the next decade, driven by the increasing demand for metals, ore depletion and underlying investments into more efficient processing. With good long-term fundamentals and service intensity, mining and metals is an attractive industry for Neles. The acquisition 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,” says Neles CEO, Olli Isotalo. “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. Going forward, we plan to continue developing the transferring businesses as a platform for growth in a strategic focus industry.”
“In recent years, Flowrox’s operations have expanded in many areas through product development and acquisitions,” adds Flowrox CEO, Jukka Koskela. “Now it is time to focus. 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 the valve and pump businesses.”
In 2020, Flowrox’s valve and pump businesses had sales of about €30 million. The businesses’ sales in fiscal year 2021 are expected to remain at the level of 2020. The profitability of the carved-out businesses is comparable to Neles’ in terms of adjusted EBITA margin. The transaction also includes the Flowrox brand. The acquired businesses employ approximately 110 people and have manufacturing in Finland, Australia, South Africa and the United States, as well as well-established sales channels in over 80 countries. The closing of the acquisition is estimated to take place in November.
Read more...From the editor's desk: Consistently not stupid Technews Publishing (SA Instrumentation & Control)
News
Over the years I’ve followed Charlie Munger. He’s considered to be one of the greatest investors and thinkers on decision making in the past century, and spent six decades as Warren Buffett’s business ...
Read more...South Africa’s space balls
Editor's Choice News
South African engineers are preparing to take low-frequency radio astronomy to the Moon with three locally developed B.A.L.L.S. spheres aboard China’s Chang’e-8 mission. This could pave the way for a 55-antenna lunar array and marks another step in the country’s growing space engineering capability.
Read more...RS South Africa announces 2026 Student Project Fund winners RS South Africa
News
RS South Africa has awarded 13 engineering students with R10?000 worth of products each through its 2026 Student Project Fund, supporting projects spanning renewable energy, robotics, warehouse automation and STEM education.
Read more...Certified gas meter module
News
Sensirion’s next-generation SGM5304 gas meter module has completed certification to the harmonised EN 17526 standard, simplifying MID approval and speeding customers’ route to market.
Read more...Trafo Power Solutions expands market share
News
Trafo Power Solutions is expanding its market share in mining, industrial, infrastructure, data centre and renewable energy applications through technical expertise, application-specific engineering and responsive customer support.
Read more...Trafo Power Solutions returns to Electra Mining Africa
News
Trafo Power Solutions returns to Electra Mining Africa 2026 with a portfolio that has expanded well beyond dry-type transformers into fully engineered electrical power solutions for mining, industrial and infrastructure operations across Africa.
While every effort has been made to ensure the accuracy of the information contained herein, the publisher and its agents cannot be held responsible for any errors contained, or any loss incurred as a result. Articles published do not necessarily reflect the views of the publishers. The editor reserves the right to alter or cut copy. Articles submitted are deemed to have been cleared for publication. Advertisements and company contact details are published as provided by the advertiser. Technews Publishing (Pty) Ltd cannot be held responsible for the accuracy or veracity of supplied material.
printer friendly version