Indutrade completes acquisition of Key Valve Technologies, South Korea

2009-11-12
Indutrade's subsidiary HP Valves BV in the Netherlands has completed the acquisition of Key Valve Technologies Ltd in accordance with the declaration of intent that was announced on 2 November 2009.

Key Valve Technologies (KVT) is a leading player in R&D and manufacturing of high pressure valves. Its products are used to control pressure and flows in severe-duty environments in power generation and in the petrochemicals industry. KVT was founded in 1998 by Mr Key Min and today has approximately 30 employees in Seoul, South Korea, with annual sales of approximately SEK 150 million. HP Valves, a wholly owned subsidiary of Indutrade, offers a wide range of valves for applications in the power industry and high-pressure applications for the petrochemical industry and the oil and gas industry. HP Valves and KVT have been working closely together for several years, and today nearly half of KVT's sales are through HP Valves. "This acquisition is a natural progression of our long-standing cooperation. Together we can benefit from each other's knowledge and experience and continue to grow together," says Marten Hinsenveld, President of HP Valves. The now completed acquisition creates conditions to combine KVT's expertise and experience in R&D with HP Valves' knowledge in manufacturing, marketing and sales. The companies' products complement each other well, and together the goal is to be the Supplier of Choice for flow solutions for the power generation industry, the petrochemical industry and other demanding applications. Following the acquisition, KVT is a wholly owned subsidiary of HP Valves and organisationally is part of Indutrade's Special Products business area, which had net sales of SEK 1,812 million in 2008. KVT will continue to operate as a standalone enterprise within the Indutrade Group, with its current management and employees. "I am happy to welcome KVT into the Indutrade Group," says Johnny Alvarsson, President and CEO of Indutrade. "KVT is a well-run and profitable company that is a leader in its niche and thus a good fit in our acquisition strategy. At the same time, we have strengthened our position in the energy segment and increased our presence in Asia." KVT is consolidated in the Group as from November 2009. The acquisition is expected to have a marginally positive impact on Indutrade’s earnings per share. Stockholm, 12 November 2009 INDUTRADE AB (publ)

Downloads