We are pleased to announce the successful completion of the sale of Severn to Valmet, a Finland-listed global industrial leader, in a transaction valued at $480 million. This follows the signing of exclusivity in November and receipt of CIFIUS clearance last week.
This milestone marks the culmination of a six-year transformation programme, during which Severn evolved from a predominantly energy-focused business into a diversified global industrial platform serving more than 12 sectors worldwide. The growth in EBITDA from $9 mm to $40 mm was through a combina ion of organic and acquisition growth. The investment also benefited from an expansion in its valuation multiple, because of this transition.
The transaction will generate a 3.9x multiple of invested capital and a 28% internal rate of return for the investors of BWE Fund II.
This outcome demonstrates the strength of Bluewater’s energy-to-industrial investment strategy and the consistent application of our core value creation levers. Through a focused programme of industrialisation, internationalisation, and a disciplined buy-and-build approach, we have successfully repositioned Severn and delivered a materially enhanced outcome for our investors.
Salil Oberoi, Partner, commented:
“Having established Severn as the world-class organisation it is today, we are pleased to pass ownership to the team at Valmet and wish them every success in the future. Valmet’s global reach and strong customer access provide an excellent platform to support Severn’s next phase of growth. This transition reflects our commitment to our energy-to-industrial strategy, and we have greatly valued working with the entire Severn team throughout this journey.”