Valmet strengthens its Process Technologies and Services segments by acquiring Körber’s Business Area Tissue

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Valmet has on July 7, 2023, entered into an agreement to acquire Körber Group’s Business Area Tissue.

The Business Area Tissue specializes in innovative converting and packaging technologies and services for the tissue industry.  

By combining the complementary offering and competences of Valmet and the acquired business, Valmet creates the markets’ widest technology, automation and services offering for the growing tissue industry covering the entire tissue value chain. Growth in tissue demand is driven by several favourable trends such as increased hygiene awareness and standards of living.

Körber’s Business Area Tissue in brief

Körber’s Business Area Tissue offers process technologies and related services for converting the jumbo reels of tissue paper into final tissue products for consumers and the Away from Home segment. It has the broadest offering in the tissue converting industry with converting lines for tissue rolls and for folded tissue including product packaging, as well as services and digital solutions.

In 2022, Körber’s Business Area Tissue’s net sales amounted to EUR 305 million and its adjusted EBITDA margin was approximately 12%. The company has a strong and growing services business, which accounted for 36% of total net sales in 2022. The business employs around 1,170 employees in Italy, Brazil, the U.S., China and Japan.

Details of the transaction

The enterprise value of the acquisition is approximately EUR 380 million on a cash and debt free basis subject to ordinary post-closing adjustments. The acquisition is estimated to be completed at the earliest on November 2, 2023, subject to competition authority approvals. The transaction consideration will be paid in cash upon the completion. Valmet will finance the acquisition with debt. The financing package for the acquisition consists of two facilities underwritten and committed by Danske Bank A/S and Nordea Bank Abp, a EUR 250 million term loan facility maturing in January 2028 and a EUR 150 million term loan facility maturing in two years from the closing of the acquisition.

Valmet estimates that the acquisition will bring sales, service and cost synergies worth of EUR 8 million by the end of 2026. The acquired business will be integrated into Valmet’s Paper business line as a separate business unit. In Valmet’s reporting, the process technology part of the business will be consolidated to Paper business line and the services part to the Services business line.  

At the end of Q1/2023, Valmet had a strong liquidity with cash and cash equivalents amounting to EUR 429 million and net interest-bearing liabilities totalling EUR 345 million. Valmet’s net debt to EBITDA ratio was 0.49 and gearing 15%. 

Pasi Laine, President and CEO of Valmet: Valmet will have the broadest offering and unrivalled technology leadership in the global tissue markets

“Valmet benefits from the growing demand for bio-based products globally. With this acquisition, Valmet takes again a new step forward and strengthens both its Process Technologies and Services segments. The combination of Valmet’s current tissue making technologies, services and automation offering and the acquired tissue converting offering and competences is a good strategic fit complementing each other and forms a strong basis to create new business opportunities and serve our customers even better. We are happy and proud to warmly welcome all the new colleagues from Körber’s Business Area Tissue to become part of Valmet.”

“Today our Business Area Tissue is a global market player. Now, joining Valmet, this is an excellent opportunity to form a unique tissue player and set the course for the future. Our Business Area Tissue will be able to further expand its potential, offering and reach with Valmet as its committed new owner,” says Stephan Seifert, CEO, Körber Group.

“Valmet has profound market expertise, a strong customer focus, and extensive experience in integrating additional competencies. We are very pleased that in Valmet we have found an ideal future partner for our employees, customers, and suppliers to leverage the full potential of our tissue business,” says Oswaldo Cruz, CEO, Körber’s Business Area Tissue.

The acquisition is discussed in Q2/2023 interim result webcast

Valmet will arrange a news conference on Valmet’s Q2/2023 interim result on July 26, 2023 at 3:00 p.m. Finnish time (EEST) as a live webcast. Valmet’s President and CEO Pasi Laine and CFO Katri Hokkanen will be presenting Valmet’s Q2/2023 results and discuss the acquisition of Körber’s Business Area Tissue in the webcast.


Valmet is a leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries.With our automation systems and flow control solutions, we serve an even wider base of process industries. Our 17,500 professionals around the world work close to our customers and are committed to moving our customers’ performance forward – every day.

The company has over 220 years of industrial history and a strong track record in continuous improvement and renewal. In 2022, a major milestone was achieved when the flow control company Neles was merged into Valmet. Valmet’s net sales in 2022 were approximately EUR 5.1 billion.

Valmet’s shares are listed on the Nasdaq Helsinki, and the head office is in Espoo, Finland.


Source: Valmet