OUTOTEC OYJ CORRECTION: STOCK EXCHANGE RELEASE DECEMBER 1, 2011 AT 9.30 AM
CORRECTION: The first paragraph of the Stock Exchange Release on December 1, 2011 at 9:30 AM was missing
Outotec to acquire all interests in Energy Products of Idaho, a supplier of renewable energy technologies
Outotec strengthens its portfolio of energy and environmental technologies by acquiring all interests in Energy Products of Idaho Limited Partnership (referred to as 'EPI') in Coeur d'Alene, the United States. EPI has pioneered in the area of biomass and difficult waste materials combustion and delivered over 100 renewable energy solutions. The transaction is subject to regulatory approval and it is expected to be closed at the end of December 2011. The acquisition price consists of two components: a fixed cash element of approximately EUR 43 million and an earn-out payment of EUR 25 million at maximum based on EPI's financial performance in 2012 and 2013.
The acquisition supports Outotec's growth strategy and is expected to increase Outotec's sales by EUR 60-90 million annually, including synergies from stronger combined sales and service network. EPI's solutions can be marketed through Outotec's global network and various services can be offered to EPI's large existing base of installed technology. Furthermore, EPI serves as a platform for growing Outotec's energy and environmental technology business in the US market. The acquisition is in line with Outotec's long-term financial targets and does not impact the company's financial guidance for 2011.
Outotec has a strong position in fluidized bed technologies and, as their original developer, has delivered over 260 fluidized bed plants for metallurgical and energy applications. EPI technologies complement Outotec's fluidized bed technology platform and strengthen Outotec's energy business. EPI's proprietary fuel thermal oxidation and gasification technologies recover energy from various biomass and wastes such as fresh and used wood, agricultural waste, demolition waste, manure, waste paper, paper sludge, oil sludge, municipal waste and many other materials. EPI focuses on medium scale plants with a combustion capacity of up to 100 MW.
"Energy Products of Idaho operates in the fast growing renewable and waste-to-energy market. Its products and services fit seamlessly into Outotec's technology portfolio. By combining our expertise and product portfolios we can provide sustainable technology solutions and services for the renewable energy sector and increase our market share," says Pertti Korhonen, CEO of Outotec.
"The acquisition of EPI by Outotec will provide benefits for EPI's existing customers and its employees. Customers will benefit from Outotec's global sales and service network and its technological expertise in fluidized bed technology. In addition, I believe EPI's employees will have more opportunities to develop their careers as a result of Outotec's global business operations", says LeRoy Pope, General Manager of Energy Products of Idaho.
Energy Products of Idaho
Energy Products of Idaho (EPI) has nearly four decades of operating experience and more than 100 fluidized bed energy system installations. The company employs 70 persons in Idaho, USA and is expected to generate approximately EUR 40 million sales and EUR 8 million operating profit in 2011.
Outotec develops and provides technology solutions for the sustainable use of Earth's natural resources. As the global leader in minerals and metals processing technology, Outotec has developed over decades several breakthrough technologies. The company also offers innovative solutions for the chemical industry, industrial water treatment and the utilization of alternative energy sources. With a global network of sales and service centers, research facilities and more than 3,600 experts, Outotec generated annual sales of EUR 970 million in 2010. Outotec shares are listed on the NASDAQ OMX Helsinki. (www.outotec.com)
For further information please contact:
Peter Weber, President - Energy, Light Metals and Environmental Solutions
tel. +49 6171 9693 165
Eila Paatela, Director - Corporate Communications
tel. +358 20 529 2004, +358 400 817 198
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