Industry Investment and Pontos Group invest MEUR 20 in Valmet Automotive05.11.2010
Industry Investment and Pontos Group are investing altogether MEUR 20 in electric vehicle developer and manufacturer Valmet Automotive. Metso Corporation will continue to be a majority shareholder after this investment, and the other two investors will own 34% of the companys total capital stock.
Valmet Automotive is a provider of engineering, manufacturing and business services for the automotive industry. In 2009 the company generated net sales of MEUR 56 and employed some 800 people. The company manufactures Porsche Cayman sports cars, electric Garia golf cars and THINK City urban cars in Uusikaupunki, Finland. Serial production of Fisker Karma hybrid cars is planned to start in the first quarter of 2011.
In conjunction with the present investment, Valmet Automotive will acquire Karmanns convertible vehicle roof business and expand into Germany and Poland.
In recent years Valmet Automotive has succeeded in adding engineering services for the automotive industry and also electric vehicles to its operations, thus complementing its offering of manufacturing services. The new investment will enable us to also develop component manufacturing through an international acquisition. This acquisition is so far the most significant step in our strategy to expand internationally and to become a leading supplier of a wide range of services for the automotive industry, says Valmet Automotives President Ilpo Korhonen.
Acquiring Karmanns roof business strengthens Valmet Automotives connections to Central Europes leading car manufacturers and gives the company critical mass, enabling development of the roof business, utilisation of accumulated electric vehicle knowhow, and the strategic development of the company from a totally new platform. Through our investment, we want to be part of this development, notes Pontos Groups CEO Kai Becker.
Globally, the electric vehicle segment will grow strongly in the next ten years. Thanks to its strong quality image and far-sighted strategy, Valmet Automotive is a frontrunner in this development. We all know that electric vehicles will be widely adopted, its just a question of how quickly that will happen, points out Industry Investments Investment Director Heikki Vesterinen.
Completion of the transaction is subject to receiving the necessary regulatory permits.
Valmet Automotive is an experienced provider of services for the automotive industry and a forerunner in electric vehicle production. The company has engineering and manufacturing contracts for the THINK City urban electric car, the electric Garia golf car and also the premium Fisker Carman hybrid car, which is rechargeable from the mains network. Over the last four decades Valmet Automotives production facilities in Uusikaupunki, Finland, have manufactured 1.1 million top-quality vehicles for a range of customers. Valmet Automotive is a part of Metso Corporation. www.valmet-automotive.com
Pontos Group is a privately owned investment company that focuses on private equity investments in unlisted companies and on real estate development in Finland, the Baltic States, Russia and selected other CIS countries. www.pontos.fi
Finnish Industry Investment Ltd is a government-owned investment company whose mission is to promote Finnish business, employment and economic growth through capital investment. Finnish Industry Investment co-invests in growth companies, directly and through funds, together with private investors. Capital investments are needed for financing the growth of portfolio companies, and for internationalisation, spin-offs, major industrial investments, and both sectoral and corporate restructurings. The targets are in all sectors. The investments of Finnish Industry Investment amount to MEUR 660. www.industryinvestment.com
Ilpo Korhonen, President, Valmet Automotive
Tel. +358 20 484 8000, e-mail: ilpo.korhonen (a) valmet-automotive.com
Johanna Henttonen, Vice President, Investor Relations, Metso Corporation
Tel. +358 20 484 3253, e-mail: johanna.henttonen (at) metso.com
Kai Becker, CEO, Pontos Group
Tel. +358 50 307 3734, e-mail: kai.becker (at) pontos.fi
Heikki Vesterinen, Investment Director, Finnish Industry Investment
Tel. +358 40 508 8558, e-mail: heikki.vesterinen (at) industryinvestment.com