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[September 2001]
Takeover Creates Rock and Mineral Processing Major
Metso Corporation announced on 11 September 2001 its decision to complete its offer to the shareholders of Svedala Industri AB. Metso says that the combination of Metso Minerals and Svedala creates a clear world leader in rock and mineral processing technology. The acquisition will increase Metso's net sales to approximately 5,500 million euros and the number of personnel to 32,000. Metso's estimate of the synergies available are at 70 million euros per annum. Metso believes that the acquisition will be earnings enhanced from 12 months after completion.
Olli Vaartimo has been appointed President of the enlarged Metso Minerals. He has been President of the current Metso Minerals operation since 1993. At June 2001, Metso had net debt of 56 million euros and Svedala had net debt of 554 million euros. The acquisition has been financed through a syndicated bank facility at attractive rates. Metso aims to restore net gearing to within the range of 40%-50% within 18 months following closing of the acquisition, through the disposal of non-core assets and its operating cash flow.
ENDS