Valmet to Acquire Severn Group

Valmet has entered into an agreement to acquire Severn Group, a well-established industrial valve company, from Bluewater, a UK-based private equity firm. The acquisition covers all three Severn divisions: Severn Glocon, ValvTechnologies and LB Bentley. Severn serves process industries globally and has over a 60-year track record of delivering specialized flow control solutions across the most demanding applications. Severn’s strong technologies, installed base and customer relationships with a diverse set of the world’s largest blue-chip industrial companies support Valmet’s growth strategy beyond its traditional core biomaterials business. 

The acquisition further strengthens Valmet’s Process Performance Solutions segment and position as a leading provider of mission-critical valve and valve automation solutions and services. Valmet’s Flow Control business, known for brands such as Neles, Jamesbury, Neles Easyflow, Valvcon, Stonel and Flowrox, delivers process performance across its strategic core industries, including refining and chemicals, renewable energy and gases as well as mining and metals. In 2024, net sales of Valmet’s Flow Control business were EUR 791 million. 

“This acquisition marks a significant step in the execution of Valmet’s Lead the Way strategy, strengthening our Process Performance Solutions segment and expanding our Flow Control business. Severn’s strong capabilities and proven track record in severe service for demanding applications make it an excellent strategic fit for Valmet. This acquisition strengthens our commitment to deliver lasting customer value over the life cycle. We are proud to welcome Severn’s skilled and dedicated employees to Valmet,” says Thomas Hinnerskov, President and CEO of Valmet.

Severn’s net sales in 2025 are estimated to amount to approximately EUR 215 million, with an EBITDA margin of around 16%. The company employs about 950 people and manufactures mainly in the UK, USA and India. Of its divisions, Severn Glocon and ValvTechnologies focus on severe service valve solutions for critical process industry applications, including refining and chemical, mining, as well as power, upstream oil and gas.  LB Bentley is recognized as a market leader in high-quality subsea valves.

The transaction is valued at USD 480 million on a cash and debt-free basis (approximately EUR 410 million calculated at prevailing exchange rates) paid in cash upon completion. Valmet has entered into a committed financing arrangement with Danske Bank A/S and OP Corporate Bank to secure the funding for the acquisition. At the end of Q3 2025, Valmet’s gearing was 38%. When the acquisition is completed, the planned financing is estimated to increase Valmet’s gearing by approximately 15 percentage points, reflecting the current debt profile. The company’s 2030 financial target for gearing is below 50%.

The acquisition is estimated to be completed during the second quarter of 2026, subject to customary closing conditions.