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 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 EUR 120 million. The implementation will be accelerated so that the run-rate of the synergies is expected to be realized by the end of 2021. About EUR 50 million of annual run-rate of the cost synergies is expected to be achieved already by the end of 2020.
The company maintains its original EUR 150 million annual revenue run-rate synergy target by the end of 2022 but notes that the Covid-19 situation creates uncertainty about the market development.
The realization of cost and revenue synergies is expected to result in one-off, pre-tax costs of approximately EUR 100 million, which is in line with the earlier estimate. Most of these costs are expected to be incurred by the end of 2021.
Metso Outotec will provide quarterly status updates on the progress of the synergy work in conjunction with its quarterly results announcements.
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.