Alfa Laval signs an agreement to acquire the cryogenics business from the French group Fives
Rhea-AI Summary
Alfa Laval (ALFVY) has signed a binding put-option agreement to acquire Fives Cryogenics business unit for EUR 800 million on a cash and debt-free basis. The France-headquartered target company is a world-leading expert in cryogenic heat transfer and pump technologies, with over 60 years of experience in manufacturing cryogenic heat exchangers and pumps for gas liquefaction.
Fives Cryogenics employs more than 700 people, operates manufacturing facilities in France, China, and Switzerland, and generated revenue of approximately EUR 200 million in 2024. Looking forward, the company is expected to generate revenue of EUR 200-250 million and be neutral to positive to Alfa Laval's group margin.
The transaction, subject to regulatory approvals and works council consultation, will be funded through existing liquidity and debt financing, with expected closing during 2025. The acquired business will operate as a new separate unit within Alfa Laval's Energy Division.
Positive
- Strategic acquisition expanding into cryogenic technologies for gas liquefaction
- Target company has strong market position with 60+ years of expertise
- Expected neutral to positive impact on group margin
- Geographic diversification with facilities in France, China, and Switzerland
- Complementary technology for energy transition applications (hydrogen, carbon capture)
Negative
- Significant cash outlay of EUR 800 million requiring debt financing
- Subject to regulatory and works council approval risks
- Integration challenges with 700+ employees across multiple countries
News Market Reaction
On the day this news was published, ALFVY declined 0.36%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Cryogenic technologies are crucial both for traditional gases like LNG and for emerging gas applications like hydrogen and carbon capture. Fives Cryogenics has more than 60 years of experience designing and manufacturing cryogenic heat exchangers and pumps for gas liquefaction. The company holds a strong position in the world market with manufacturing facilities in
"By adding cryogenic technologies to the Alfa Laval portfolio, we would expand our capabilities to move energy efficiency and the energy transition forward," says Tom Erixon, President and CEO, Alfa Laval. "We believe that Fives Cryogenics would be an excellent addition to Alfa Laval, and we see strong potential in the business and key synergies between Fives Cryogenics' deep technological expertise in cryogenics and Alfa Laval's strong position in the global gas market. We plan to continue to invest in capabilities and growth in the next few years, especially in the key production facility in Golbey,
"In the next growth phase, building on the investments realized and committed by the Fives Group, Fives Cryogenics would be well served by belonging to an industrial group with deep knowledge of the technology and a global presence in the future growth areas. With Alfa Laval, Fives Cryogenics would have a strong owner who I know would develop the company and the team further," says Frédéric Sanchez, CEO of the Fives Group.
From an organizational perspective, the cryogenic business would be part of Alfa Laval's Energy Division and operate as a new separate business unit.
Closing of the transaction is subject to the necessary regulatory approvals and is expected during 2025. The all-cash transaction will be funded by existing liquidity and debt financing. Jefferies acts as financial advisor to Alfa Laval, while White & Case acts as legal advisor.
This is information that Alfa Laval AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at CET 07:30 on 21 March 2025.
Contacts
Johan Lundin
Head of Investor Relations, Alfa Laval
Mobile: +46 730 46 30 90
johan.lundin@alfalaval.com
Sara Helweg-Larsen
Head of Communications, Alfa Laval
Mobile: +46 730 35 80 98
sara.helweglarsen@alfalaval.com
This is Alfa Laval
The ability to make the most of what we have is more important than ever. Together with our customers, we're innovating the industries that society depends on and creating lasting positive impact. Alfa Laval is a leading global provider of first-rate products in the areas of heat transfer, separation and fluid handling. We're set on helping billions of people to get the energy, food, and clean water they need. And, at the same time, we're decarbonizing the marine fleet that is the backbone of global trade.
We pioneer technologies and solutions that enable our customers to unlock the true potential of resources. As our customers' businesses grow stronger, the goal of a truly sustainable world edges closer. The company is committed to optimizing processes, creating responsible growth, and driving progress to support customers in achieving their business goals and sustainability targets. Together, we're pioneering positive impact.
Alfa Laval was founded 140 years ago, has customers in 100 countries, employs more than 22,300 people, and annual sales were
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The following files are available for download:
https://mb.cision.com/Public/905/4122168/b82d81c7f99ce030.pdf | Alfa Laval signs an agreement to acquire the cryogenics business from the French group Fives Corporate press release 2025-03-21 |
https://news.cision.com/alfa-laval/i/close-up-cryogenic-liquid-nitrogen-640x360,c3389221 | close-up-cryogenic-liquid-nitrogen-640x360 |
FAQ
How much is Alfa Laval (ALFVY) paying for Fives Cryogenics acquisition?
What is the annual revenue of Fives Cryogenics in 2024?
When will Alfa Laval's acquisition of Fives Cryogenics be completed?
How will Alfa Laval (ALFVY) finance the Fives Cryogenics acquisition?
What are the expected revenue projections for Fives Cryogenics post-acquisition?
