Valmet has agreed to acquire Worcestershire-based industrial valve specialist Severn Group from private equity firm Bluewater in a deal valued at $480 million (around £358m).
The acquisition is on a cash and debt-free basis, with completion expected in the second quarter of 2026.
It spans all three Severn divisions – Severn Glocon, ValvTechnologies and LB Bentley – and is designed to strengthen Valmet’s Process Performance Solutions segment and expand its Flow Control business beyond its traditional biomaterials focus.
Severn is a long-established supplier of specialist flow control equipment to process industries, with more than 60 years of operating history and a customer base that includes large global industrial groups.
Finland-headquartered Valmet said the deal would deepen its position in “mission-critical valve and valve automation solutions and services”, building on its Flow Control portfolio.
The business reported net sales of €791m for its Flow Control business in 2024.
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“This acquisition marks a significant step in the execution of Valmet’s Lead the Way strategy, strengthening our Process Performance Solutions segment and expanding our Flow Control business,” said Valmet president and CEO, Thomas Hinnerskov.
“Severn’s strong capabilities and proven track record in severe service for demanding applications make it an excellent strategic fit for Valmet. This acquisition strengthens our commitment to deliver lasting customer value over the life cycle.
“We are proud to welcome Severn’s skilled and dedicated employees to Valmet.”
Severn CEO, Perttu Louhiluoto, added: “We are proud to welcome Valmet as our new owner and look forward to building on the strong foundation laid over recent years.
“Thanks to Bluewater’s visionary leadership, Severn Group has grown from a British manufacturer in the energy space into a global industrial business with a truly international footprint.
“As we look ahead, the scale and breadth of the global opportunities in front of us are greater than ever and ones we cannot fully unlock alone.
“Joining Valmet positions us to accelerate our growth, expand into new markets, and deliver even greater value to customers worldwide. We are excited about this next phase of Severn’s journey.”
Financially, Severn’s 2025 net sales are estimated at around £188m with an EBITDA margin of roughly 16%.
The business employs about 950 people and manufactures mainly in the UK, the US and India.
Valmet said it will fund the acquisition in cash and has secured committed financing from Danske Bank A/S and OP Corporate Bank.