Hannes Snellman Attorneys Ltd and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisors to Valmet., while Roschier, Attorneys Ltd. and Freshfields Bruckhaus Deringer LLP acted as legal advisors to Neles in the transaction. White & Case LLP advised Nordea Bank Abp and Danske Bank A/S, as joint underwriters, coordinating bookrunners and mandated lead arrangers.
Valmet and Neles have entered into a Combination Agreement, pursuant to which Valmet and Neles have agreed to combine their business operations through a statutory absorption merger pursuant to the Finnish Companies Act.
Following the merger, it will have illustrative combined net sales for 2020 of approximately €4.3 billion. The merger, which is expected to complete by 1 January 2022, is subject to regulatory and other approvals.
In order to support and finance the completion of the merger, Valmet and Neles have entered into re- and back-up financing agreements with Danske Bank A/S and Nordea Bank Abp. The merger financing arrangements comprise EUR 695 million term loan facilities for Valmet and EUR 301 million term facility for Neles, which Danske Bank A/S and Nordea Bank Abp as joint underwriters, coordinating bookrunners and mandated lead arrangers have arranged and underwritten in full. The facilities may be used to refinance the companies’ existing indebtedness in connection with the merger and finance potential cash redemptions of Neles’ shares and Neles’ extra distribution of funds.
Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries.
Neles Oyj is a Finnish publicly traded company offering flow control solutions for process industries. Neles designs and manufactures industrial valves and valve automation solutions.
The Skadden Corporate team in London comprised Scott Simpson (Picture), Lorenzo Corte, Danny Tricot, Sarah Knapp, Angelo Malvestio, Patrick Tsitsaros and summer associate Sherin Nassar.
The Hannes Snellman team comprised Johan Aalto, Klaus Ilmonen, Jon Termonen, Annemari Rosi, Maisa Cederström, Anna Sahrakorpi, Aki Salmela, Satu Kokko, Kaisa Himmanen, and Sofi Lehtinen (M&A), Mikko Huimala, Toni Malminen, Meri Vanhanen, and Susanna Kyllöinen (Competition & Procurement), Antti Alanko and Pauliina Sutinen (Finance), and Heikki Vesikansa, Jenni Parviainen, and Harri Vehviläinen (Tax).
The Roschier’s core advisory team comprises Antti Ihamuotila, Seppo Kymäläinen, Jaakko Laitinen, Mia Mokkila, Jan-Anders Wik, Robert Holmberg, Santeri Naukkarinen and Sabina Hautaviita (M&A and Corporate Advisory), Mika Ohtonen and Andreas Bussman (Tax), Ami Paanajärvi (Competition), Jonne Järvi and Juhani Lautjärvi (Finance).
White & Case LLP advised Nordea Bank Abp and Danske Bank A/S with a team led by partner Tanja Törnkvist (Helsinki) and included partner Shane McDonald (London) and associates Henna Viljakainen (Helsinki) and Olaolu Akerele (London).
Involved fees earner: Johan Aalto – Hannes Snellman; Antti Alanko – Hannes Snellman; Maisa Cederström – Hannes Snellman; Kaisa Himmanen – Hannes Snellman; Mikko Huimala – Hannes Snellman; Klaus Ilmonen – Hannes Snellman; Satu Kokko – Hannes Snellman; Susanna Kyllöinen – Hannes Snellman; Sofi Lehtinen – Hannes Snellman; Toni Malminen – Hannes Snellman; Jenni Parviainen – Hannes Snellman; Annemari Rosi – Hannes Snellman; Anna Sahrakorpi – Hannes Snellman; Aki Salmela – Hannes Snellman; Jon Termonen – Hannes Snellman; Meri Vanhanen – Hannes Snellman; Harri Vehviläinen – Hannes Snellman; Heikki Vesikansa – Hannes Snellman; Andreas Bussman – Roschier; Sabina Hautaviita – Roschier; Robert Holmberg – Roschier; Antti Ihamuotila – Roschier; Jonne Järvi – Roschier; Seppo Kymäläinen – Roschier; Jaakko Laitinen – Roschier; Juhani Lautjärvi – Roschier; Mia Mokkila – Roschier; Santeri Naukkarinen – Roschier; Mika Ohtonen – Roschier; Ami Paanajärvi – Roschier; Jan-Anders Wik – Roschier; Lorenzo Corte – Skadden Arps Slate Meager & Flom; Sarah Knapp – Skadden Arps Slate Meager & Flom; Angelo Malvestio – Skadden Arps Slate Meager & Flom; Scott Simpson – Skadden Arps Slate Meager & Flom; Danny Tricot – Skadden Arps Slate Meager & Flom; Patrick Tsitsaros – Skadden Arps Slate Meager & Flom; Olaolu Akerele – White & Case; Shane McDonald – White & Case; Tanja Tornkvist – White & Case; Henna Viljakainen – White & Case;