Business
Vestum initiates structural changes to its operations
Vestum initiates structural changes to its operations
About this update from Vestum Ab
The Board of Directors of Vestum AB (publ) (“Vestum”) has decided to implement a structural split of the Group where parts of the Flow Technology segment will be organised as a separate business. The decision is based on the Group currently operating with two clearly distinct business logics: products with focus on British and Nordic water infrastructure, and products and services with a focus on the Swedish industry and infrastructure. These two businesses have different growth potential, limited synergies and are considered to be able to develop better as two independent Groups. Hence, the Board’s decision enables more focused development, higher profitability and a clearer strategic positioning for each Group. The planned measures will also lead to organisational changes.The Board has also decided to evaluate additional structural alternatives for the separated Flow Technology business — including a possible future sale. However, no decision on a divestment has been made, and all alternatives will be evaluated based on what is considered to create the most value for the company’s shareholders. Vestum has engaged Danske Bank A/S, Denmark, Sweden Branch as financial advisor for this process.Separation of parts of the Flow Technology segmentThe companies intended to be included in the separated operations are Pump Supplies (UK), PDAS (UK), Nortech (UK), Dynamic Fluid Solutions (UK), Scanregn (DK), Pordrän (SE), Filtrena (SE) and Norsk Pumpeservice (NO). These companies are market leaders within providing niche solutions for water infrastructure, with solid historical development, significant future potential and a clear industrial logic to operate as a separate Group.On a pro forma basis, the operations generated sales of approximately SEK 1.3 billion and an adjusted EBITA of approximately SEK 280 million in 2025.Remaining operationsThe remaining operations consist of niche products and services to the Swedish industry and infrastructure that as a standalone Group are assessed to be able to realise their growth potential and strengthen profitability. The remaining operations will carry a significantly lower cost for central functions than existing operations do today. The restructuring of central functions will be reported in the coming quarter.In 2025, the remaining operations, which consist of 20 Swedish companies, generated accumulated sales of approxi...