Aker Kvaerner to sell pulping, power businesses to Metso
Lysaker, Norway —After years of efforts to build a strong pulp-and-power business, Aker Kvaerner ASA (AK) has signed a letter of intent to sell those businesses to Finland-based Metso Corp. The transaction is valued at some NOK 3 billion (about $447 million as of Feb.9), subject to due diligence by Metso and closing adjustments. Final agreement is expected by mid-April 2006. AK’s net gain—compared to book value—of the businesses is estimated to total NOK 2.4 billion.
Of AK’s 22 000 employees—serving the international oil, gas and process industries—the Pulping and Power entity employs about 2 000, with principal facilities in Sweden, Finland, U.S., Canada, Japan and Brazil. In 2005, the Pulping and Power business had revenues of NOK 4,523 million; its order backlog at yearend 2005 was NOK 4,819 million.
Metso Paper's Fiber Business Line—focused in Finland and Sweden—serves the pulp and paper industry with chemical-, mechanical-, and recycled-fiber technologies. In 2005, the Fiber Business Line's 2,000 employees generated net sales of€489 million.
Metso Paper’s engineering-and-technology parent, a corporation, had net sales in 2005 of approximately €4.2 billion. Its 22,000 employees—in over 50 countries—serve customers in the pulp and paper, rock and minerals processing, energy, and other industries.
— Richard Phelps , senior editor, Control Engineering