Global industrial engineering group Clyde Blowers has signed an agreement to acquire the wind gear manufacturer Moventas Wind Ltd and the industrial gear manufacturer Moventas Santasalo Ltd. Based on the sales and purchase agreement signed, the objective is to close the acquisition before the year-end.
The business has been acquired for the price of € 100 million, and has been solely financed by equity investment. A new long-term ownership solution has been sought for Moventas companies since June when, after prolonged financing negotiations, the holding company Moventas Ltd was filed for bankruptcy and its operative subsidiaries applied for corporate restructuring. Moventas made significant investments in its gear production during the years 2007-2008 encouraged by strong demand. However, the post finance crisis markets have not supported these investments and Moventas has suffered from excess capacity. As part of its corporate restructuring, Moventas is now exploring possibilities of reorganizing its production in Finland. Therefore, both Finnish Moventas companies will start co-operation negotiations on 21 November, 2011. To ensure that the core operations of gear production can remain in Finland, reorganizing and downscaling are necessary regardless of the acquisition.
The business has been acquired for the price of € 100 million, and has been solely financed by equity investment. A new long-term ownership solution has been sought for Moventas companies since June when, after prolonged financing negotiations, the holding company Moventas Ltd was filed for bankruptcy and its operative subsidiaries applied for corporate restructuring. Moventas made significant investments in its gear production during the years 2007-2008 encouraged by strong demand. However, the post finance crisis markets have not supported these investments and Moventas has suffered from excess capacity. As part of its corporate restructuring, Moventas is now exploring possibilities of reorganizing its production in Finland. Therefore, both Finnish Moventas companies will start co-operation negotiations on 21 November, 2011. To ensure that the core operations of gear production can remain in Finland, reorganizing and downscaling are necessary regardless of the acquisition.
