Key Highlights
- Vestum struck a deal to divest its Flowa Technology division to Nordic Capital for a total price of SEK 6.5 billion on a cash-and-debt-free basis.
- The transaction is projected to deliver a capital gain of around SEK 3.5 billion to Vestum.
- Following completion, Vestum’s board intends to distribute a special dividend of about SEK 13.50 per share to shareholders.
- Approximately SEK 1.45 billion from the sale will be allocated toward repaying existing debt.
- Conny Ryk has assumed the role of CEO at Vestum with immediate effect.
Shares of Vestum rocketed 27.64% higher following the Swedish industrial conglomerate’s disclosure that it has reached an agreement to sell its Flow Technology division to private equity player Nordic Capital in a deal valued at SEK 6.5 billion.
The agreement encompasses the complete share capital of Flowa Technology AB, a business unit that Vestum spun out as an independent entity earlier in the year. The purchase price reflects a cash-and-debt-free enterprise value.
Vestum anticipates recognizing a capital gain in the vicinity of SEK 3.5 billion from the divestiture. This represents a significant value realization from an asset the company has been systematically reorganizing since February.
Flowa was officially carved out from Vestum’s wider portfolio and comprises ten operating companies spread across the United Kingdom, Sweden, Denmark, and Norway. These entities specialize in water infrastructure solutions and related services.
For the trailing twelve-month period ending March 31, 2026, Flowa recorded revenues of SEK 1.43 billion, with pro forma adjusted EBITDA reaching SEK 370 million and adjusted EBITA of SEK 319 million.
Nordic Capital will self-finance the entire acquisition. Completion is anticipated during the latter half of 2026, pending customary regulatory clearances.
Special Dividend Distribution Planned
Upon transaction completion, Vestum’s board of directors plans to recommend an extraordinary cash dividend of roughly SEK 13.50 per share. This proposal will be submitted to shareholders following the deal’s closure.
Additionally, the board has earmarked SEK 1.45 billion of the transaction proceeds for debt reduction. Following these actions, the continuing business is projected to maintain a net financial debt-to-EBITDA ratio beneath its 2.5x strategic threshold.
Vestum’s continuing operations focus on specialized products and services catering to Nordic industrial and infrastructure sectors. For the twelve months through March 31, these businesses generated revenues of SEK 2.2 billion with adjusted EBITA of approximately SEK 130 million.
Management Shake-Up Accompanies Transaction
The divestiture triggers a significant management transition. Simon Göthberg, Vestum’s outgoing CEO, will depart the company to assume the chief executive position at Flowa. Conny Ryk has been appointed to succeed him as CEO of Vestum, effective immediately.
Ryk previously held the position of Chairman of Vestum’s board of directors. Upon accepting the CEO role, he relinquished that chairmanship. Caroline Atelius has been designated as the new board Chair.
The board will convene an extraordinary shareholders’ meeting in the near term to address board composition, compensation structures, and a possible corporate name change.
Vestum expressed confidence that its continuing operations possess substantial capacity for expansion through both organic growth initiatives and strategic acquisitions, with immediate emphasis on enhancing profitability metrics.
Management noted that overhead expenses for the remaining business will decline compared to historical levels, with detailed savings to be disclosed and monitored in upcoming quarterly reports.
The transaction was publicly announced on June 10, 2026, representing the culmination of a competitive sale process that attracted multiple prospective acquirers throughout the spring months.
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