METSO POWDERMET

Company Information: 

Metso Powdermet AB in Sweden was part of Metso Corporation. The company designs, manufactures and sells hot isostatic pressing (HIP) metal products and components based on powder metallurgy mainly to the oil and gas industry as well as to engine manufacturers. The company is the global market leader in its segment.

The company is located in Surahammar, Sweden, and has a turnover of about 10 million euros, good profitability and 90% of the products are exported. Major clients included engine manufacturer Man, Aker Kvaerner in the oil and gas industry and ABB.

Former Situation: 

Metso Powdermet AB did no longer fit Metso’s strategy, so Metso decided to find a new owner for the company. Since the company was running relatively independently of Metso, its separation was relatively easy.

Metso wanted to start the search for an international buyer and asked ProMan/IMAP to manage the sale process. The idea of using Proman/ IMAP came from Metso's M&A department.

The Process: 

“ProMan’s international network IMAP worked in an effective manner. They found 150 potential buyer candidates from all across Europe and the United States, in a total of 14 countries. While searching for buyers, we prepared for the following steps by preparing company analysis, valuation and presentation materials” says Vesa Kainu, responsible for the Metso Ventures business area. “Powdermet already had interested buyers, but we wanted to go through the international process to ensure that the sales price would be on the right level. We also wanted to find the best buyer for the company". Metso naturally aspired to get the best possible price for Powdermet. “ProMan created a competitive situation while keeping a strict process control".

The time schedule for the sales project was extremely tight.

The project was supposed to take seven months. "ProMan required interested buyers to commit to specific timelines, and it worked conclusively. After only a few months we had a list of the top ten potential buyers including both industrial companies and private equity investors."

"We ended up selling Powdermet to the Swedish company Sandvik, who as an industrial buyer was our favorite option. The buyer's geographical proximity with Metso was not a criterion, but the transaction is easier when the buyer and seller are culturally close”, says Vesa Kainu, who has been involved in 150 acquisitions. “ProMan was the right sized partner for us who understood the process. It also had the support of IMAP, which was an invaluable factor in the case of Powdemet”.

The Situation Today: 

Metso is satisfied with the outcome that resulted in the divestment within their time schedule to their preferred buyer.

In their marketing Sandvik uses Powdermet as their spearhead technology, even though the company is not big.