Key Highlights Swedish industrial company Vestum reached an agreement to divest its Flowa Technology division to Nordic Capital for SEK 6.5 billion, structured without cash or debt. The trans
Shares of Vestum climbed 27.64% following the Swedish industrial conglomerate’s disclosure that it has agreed to divest its Flow Technology division to private equity investor Nordic Capital in a transaction valued at SEK 6.5 billion.
Vestum AB (VESTUS.XD)The agreement encompasses the complete ownership of Flowa Technology AB, a business unit that Vestum established as an independent entity earlier in the current year. The financial arrangement excludes both cash and debt from the purchase price.
Vestum anticipates the transaction will yield a capital profit of roughly SEK 3.5 billion. This represents a significant value realization from an asset the company has been strategically repositioning since February.
Flowa was officially isolated from Vestum’s other business segments 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 concluded on March 31, 2026, Flowa recorded revenue of SEK 1.43 billion, adjusted EBITDA of SEK 370 million, and adjusted EBITA reaching SEK 319 million on a pro forma calculation.
Nordic Capital is providing all financing for the acquisition independently. Completion of the deal is anticipated during the latter half of 2026, pending necessary regulatory clearances.
Following the deal’s finalization, Vestum’s board of directors intends to recommend a special dividend distribution of roughly SEK 13.50 per share. This proposed payment will require shareholder approval after the transaction concludes.
The board additionally plans to deploy SEK 1.45 billion from the transaction proceeds toward paying down existing borrowings. Following these strategic actions, the company’s continuing operations are projected to maintain a net debt-to-EBITDA ratio beneath its 2.5x strategic threshold.
Vestum’s retained business portfolio consists of specialized products and services targeting Nordic industrial and infrastructure sectors. During the twelve months ending March 31, these continuing operations generated revenue of SEK 2.2 billion alongside adjusted EBITA of approximately SEK 130 million.
The divestment announcement coincides with significant executive changes. Simon Göthberg, Vestum’s outgoing Chief Executive Officer, will transition to lead Flowa as its CEO. Replacing him at Vestum is Conny Ryk, who assumes the CEO position with immediate effect.
Ryk previously held the position of Chairman on Vestum’s board of directors. Upon accepting the CEO appointment, he relinquished his board chairmanship. Caroline Atelius has been designated as the new board Chairperson.
The board intends to convene an extraordinary shareholder meeting in the near term to address board structure, executive compensation arrangements, and the possibility of rebranding the company.
Vestum expressed confidence that its remaining business units possess substantial capacity for expansion through both organic growth initiatives and strategic acquisitions, while prioritizing profitability enhancement in the immediate term.
The board indicated that overhead costs associated with central corporate functions will decrease for the streamlined business, with detailed savings figures to be disclosed in subsequent quarterly reports.
The transaction was publicly announced on June 10, 2026, concluding a competitive sale process that attracted multiple interested parties throughout the spring months.
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