- The transaction marks one of Bluewater’s largest exits, reflecting significant value creation through strategic diversification and international expansion.
- Severn evolved from a predominantly energy-focused company into a diversified global industrial platform operating across 12+ sectors worldwide.
- Bluewater delivers around a 4x return for Fund II LPs by executing disciplined sector diversification, global scaling, and accretive M&A.
- Acquisition by Finland-listed industrial leader Valmet underscores Severn’s strengthened position and ambition for further growth.
- “This deal is a blueprint for our investment model,” says Tom Sikorski, Founding Partner, Bluewater.
- The acquisition is expected to be completed during Q2 2026, subject to customary closing conditions
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London, 22nd Dec’ 2025 – Bluewater, a leading UK-based private equity firm focused on energy and industrial sectors, today announced the agreement to sell Severn, one of Britain’s longest-established valve manufacturers, to Valmet, a Finland-listed global industrial leader, in a transaction valued at $480 million
The sale concludes a four-year transformation programme that repositioned Severn from a UK energy-sector manufacturer into a diversified global industrial business.
Since acquiring Severn in 2020, when 73% of revenue came from upstream oil & gas, Bluewater has supported the company in expanding across 12+ industrial sectors, reducing commodity-linked exposure to roughly 25%. Over this period, Severn’s earnings have quadrupled, its global footprint has expanded significantly, now operating across 20 locations worldwide, and it employs around 1,000 staff globally.
Reflecting on the sale and Severn’s transformation, Bluewater’s Founding Partner, said, “Severn demonstrates exactly what we set out to achieve, taking a highly capable engineering business rooted in energy and supporting its evolution into a globally competitive industrial leader. The management team has delivered exceptional progress, and we are proud to have been part of their journey. This outcome reinforces our conviction in the model of strategic diversification, disciplined scaling and long-term value creation.”
Bluewater’s exit realises an approximate 4x return for its Fund II investors, underscoring the firm’s strategy to transform energy-centric businesses into global industrial platforms commanding higher valuations.
Bluewater Partner Salil Oberoi highlighted the impact of diversification and the strength of the partnership with Severn’s leadership, “Through sector diversification into areas such as mining and nuclear, global expansion and significant operational investment, Severn has been reshaped into a resilient and scalable industrial platform. This has been a deeply collaborative effort with an outstanding management team, and the business is exceptionally well positioned for its next phase of growth. It stands as a prime example of our investment philosophy in action.”
Under Bluewater’s ownership, Severn expanded its customer base and international reach, enhanced operations, and improved governance, shifting its valuation multiples from energy-sector levels (~6x earnings) to industrial-sector benchmarks (~12x), validating Bluewater’s strategic approach.
This approach remains central to Bluewater’s portfolio, focusing on strong engineering assets, diversification, and global expansion to drive long-term value.
Severn’s leadership credited Bluewater with providing the strategic support necessary to accelerate the company’s transition from a British manufacturer to a global industrial operator.
Perttu Louhiluoto, CEO of Severn, said, “Bluewater’s strategic guidance and long-term support have been instrumental in repositioning Severn as a global industrial player. Their backing has enabled us to diversify, expand internationally and strengthen our technology base. We enter this next chapter with real momentum.”
Valmet’s acquisition provides Severn with a sustainable and complementary home, aligning with Valmet’s strategy to broaden its industrial technology portfolio and expand its global footprint by integrating specialist engineering capabilities and diversified industrial platforms. This transaction positions Severn strongly for its next phase of growth and innovation.