Global law firm White & Case LLP has advised Nordea Bank Abp and Danske Bank A/S, as joint underwriters, coordinating bookrunners and mandated lead arrangers, on the financing arrangements for the anticipated combination of Valmet Oyj and Neles Oyj, both of which are listed on the Nasdaq Helsinki.
The proposed combination will be implemented as a statutory absorption merger whereby Neles will be merged into Valmet. The combination will create a leading company with a unique offering for process industries globally and with combined annual net sales of approximately €4.3 billion.
The financing arrangements comprise €695 million term loan facilities for Valmet and a €301 million term loan facility for Neles. The facilities will be used to refinance the companies’ existing indebtedness in relation to the merger and finance potential cash redemptions of Neles’ shares and Neles’ extra distribution.
Valmet is a leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. Its services and automation solutions improve the reliability and performance of its customers’ processes and enhance the effective utilization of raw materials and energy. Valmet employs around 14,000 people with net sales in 2020 of approximately €3.7 billion.
Neles is a provider of flow control solutions for process industries, offering sustainable solutions by helping to ensure the safe flow of materials. It employs around 2,850 employees in 40 different countries and has customers in a variety of industries including mining and metals, pulp, paper and bioproducts, chemicals, petrochemicals and industrial gas.
The White & Case team which advised on the transaction was led by partner Tanja Törnkvist (Helsinki) and included partner Shane McDonald (London) and associates Henna Viljakainen (Helsinki) and Olaolu Akerele (London).
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