Valmet to acquire Severn Group; India perspective

On 22 December, Valmet agreed to acquire Severn Group, an industrial valve company, from Bluewater, a UK-based private equity firm. The acquisition includes all three Severn divisions: Severn Glocon, ValvTechnologies, and LB Bentley. The group services process industries across the world and has over 60 years of experience providing specialised flow control systems for a wide range of applications. 

The acquisition boosts Valmet’s process performance solutions sector and positions it as a provider of mission-critical valve and valve automation products and services.

The agreement is valued at USD 480-million (approximately EUR 410-million), and the acquisition is estimated to be completed during the second quarter of 2026, subject to customary closing conditions.

Thomas Hinnerskov, president and CEO of Valmet, commented on the acquisition, “This acquisition marks a significant step in the execution of Valmet’s Lead the Way strategy, strengthening our process performance solutions segment and expanding our flow control business.”

Hinnerskov added, “Severn’s strong capabilities and proven track record in severe service for demanding applications make it an excellent strategic fit for Valmet. This acquisition strengthens our commitment to deliver lasting customer value over the life cycle. We are proud to welcome Severn’s skilled and dedicated employees to Valmet.”

Perttu Louhiluoto, CEO of Severn, remarked, “We are proud to welcome Valmet as our new owner and look forward to building on the strong foundation laid over recent years. Thanks to Bluewater’s visionary leadership, Severn Group has grown from a British manufacturer in the energy space into a global industrial business with a truly international footprint.”

Louhiluoto added, “As we look ahead, the scale and breadth of the global opportunities in front of us are greater than ever and ones we cannot fully unlock alone. Joining Valmet positions us to accelerate our growth, expand into new markets, and deliver even greater value to customers worldwide. We are excited about this next phase of Severn’s journey.”

India perspective
With projected 2025 net sales of approximately EUR 215-million, a global workforce of 950 employees, and a manufacturing network in the UK, USA, and India, Severn complements Valmet’s existing footprint, enabling a robust presence in key industrial markets.

The acquisition marks a pivotal consolidation of industrial power which is set to ripple through the Indian paper, printing, and packaging sectors. By bringing Severn’s Chennai-based manufacturing facility under its global umbrella, Valmet is localising the production of mission-critical flow control technology.

For Indian paper mills, this means direct access to high-specification valves that were previously often subject to the logistical hurdles of international imports. This localised footprint is expected to reduce downtime and lead times for mill upgrades, allowing Indian manufacturers to maintain production schedules as domestic demand for paperboard and flexible packaging continues to climb.

From a technical perspective, integrating Severn’s valve technology into Valmet’s existing paper machinery portfolio creates a more cohesive automation environment. In the manufacturing of pulp and paper, the precision of flow control is the silent architect of product quality; it dictates the consistency of the pulp slurry, which in turn determines the GSM and surface smoothness of the final paper roll. 

As Indian packaging converters transition to high-speed, automated printing and converting lines, the need for uniform raw materials becomes increasingly essential. This acquisition ensures that the upstream machinery used by Indian mills is equipped with specialised valves designed for demanding pressures and temperatures, resulting in a more reliable and standardised output for the packaging industry.

Beyond the mill, the impact extends to the chemical and ink sectors. The production of the resins, solvents, and adhesives used in flexible packaging involves hazardous processes that require the exact type of high-integrity flow control systems for which Severn is globally recognised. 

A more robust, Valmet-backed support network in India means that these chemical plants can operate with higher safety margins and fewer unplanned outages. This creates a trickle-down effect of reliability, ensuring that the printing and lamination sectors face fewer supply chain disruptions regarding their essential consumables.

As sustainability and energy efficiency become the primary drivers for investment, the introduction of more precise, integrated flow control systems will help Indian plants reduce energy consumption and waste. By bridging the gap between high-end Finnish engineering and Indian manufacturing capability, this deal secures a more technically advanced and environmentally conscious future for the entire print and packaging value chain in India.