1. A leading position with a wide presence across the value chain allowing Metso Outotec to provide an end-to-end offering in minerals processing
2. Enlarged installed base coupled with advanced service offering
3. Leadership in sustainable technologies across all customer industries
4. Benefits of scale across the minerals, metals and aggregates verticals, as well as geographies provide added value
5. Significant cost and revenue and synergies
6. Solid capital structure and attractive dividend policy
Metso Outotec has a presence across the full minerals processing and metals refining value chain, with a differentiated ability to deliver end-to-end solutions across the whole process from crushing to end products. The company owns a broad portfolio of leading technologies in, for example, comminution, beneficiation and metals refining, as well as a market-leading aggregates business and global strength in services.
Thanks to its strong technology platform, Metso Outotec has critical scale to continue to drive technology innovation and provide customers with differentiated service offerings. It will benefit from extensive patents and patent applications, R&D specialists globally and in-house R&D centers. The company will further accelerate development of intelligent minerals processing and data analytics, and will leverage its technical know-how and intellectual property (IP) across the enlarged product portfolio to deliver sustainable differentiated client solutions and further develop market-leading digital platforms.
The enhanced scale and combination of technological and service expertise enables Metso Outotec to offer more integrated customer solutions and supply larger process solutions to existing and new customers.
Metso Outotec will offer enhanced customer support through a stronger global operating network and customer proximity, as well as access to a wide range of services and consumables.
Metso Outotec expects to achieve run-rate annual pre-tax cost synergies of at least EUR 100 million. In addition, the highly complementary product and service portfolio and the combined global footprint are expected to generate multiple cross-selling opportunities, leading to run-rate annual revenue synergies of at least EUR 150 million.
The cost synergies are expected to be realized from operations (which are expected to contribute approximately 60% of the expected annual pre-tax cost synergies of EUR 100 million), with the balance from optimization of supply chain and procurement savings.
Both cost and revenue synergies are anticipated to be fully realized by the end of the third year following completion of the transaction, phased in over that period. It is expected that the realization of these synergies would result in one-off pre-tax costs of approximately EUR 100 million, with the substantial majority of these costs being incurred during the first 12-24 months post completion.
In addition, Metso Outotec anticipates incremental synergies from financing (including reduced funding costs), cash management and structure optimization.
Attractive dividend policy
Metso Outotec has a solid capital structure and an investment-grade credit rating.
The dividend policy for Metso Outotec will be determined by the board of directors soon after the completion of the transaction. Metso Outotec is expected to have the capacity for an attractive dividend policy, while maintaining a strong balance sheet.