Valmet Initiates Strategic Review for Potential Business Separation

Valmet Oyj's Board of Directors has decided to commence a strategic review to assess the possibility of separating its two core business segments, Biomaterial Solutions and Services, and Process Performance Solutions, into two distinct publicly listed companies. The review will examine whether operating as separate entities on Nasdaq Helsinki would create greater shareholder value compared to the current combined structure.

Both of Valmet's main business segments are described as large, largely independent, and profitable operations with strong market positions. They possess the scale to succeed independently. The company noted the recent completion of the Severn acquisition, which brought Process Performance Solutions' annual net sales to approximately EUR 1.7 billion, as a factor making this an opportune time to assess value creation potential.

The two segments reportedly operate with a degree of independence, serving different customer industries, exhibiting distinct business drivers, and having different capital allocation profiles. Biomaterial Solutions and Services focuses on the pulp, paper, and energy sectors, while Process Performance Solutions is an automation and flow control business serving a diversified range of industries, with nearly 70% of its net sales now originating from outside the pulp and paper sector.

Valmet's Board believes a separation could allow each business to pursue growth more independently, potentially leading to sharper management focus, increased agility, tailored capital allocation, and more flexible access to capital. The review will also consider if separation would improve transparency and simplify governance, allowing capital markets to better recognize the full value of both segments.

Valmet stated that the review does not guarantee any transaction, including a separation. An update on the review is expected by the time the company publishes its full-year 2026 results.