Vestelli and Pipelife have agreed on a business arrangement related to the sale and manufacture of wastewater systems. Pipelife sells its rights related to wastewater systems to Vestelli
From Vestelli you get proven effective wastewater systems. Long-lasting and worry-free Finnish Vestelli treatment solutions are an environmental act.
In the transaction, the rights related to the wastewater systems business of Pipelife Finland Oy, a manufacturer of HVAC products, will be transferred to Vestelli Oy , after which the companies will launch a strategic contract manufacturing cooperation. With the completed transaction, Vestelli will expand its wastewater systems offering and strengthen its position as a total solution provider for wastewater systems. With the transaction, Vestelli will gain a new strong industrial player to manufacture wastewater products.
The offering is becoming more diverse and cooperation is strengthening
“By selling the wastewater systems business to Vestell, we are giving it the opportunity to develop and strengthen in an environment for which it is ideally suited.
Pipelife will focus on the infrastructure and building technology business in the future. This arrangement also enables strategic cooperation between our companies,” says Mika Rajakangas , Building Technology Sales Manager at Pipelife Finland.
According to Joona Linna, Chairman of the Board of Vestelli Oy, the arrangement will allow Vestelli to diversify its product portfolio and strengthen its operations in Finland and internationally. “Finnish water companies are typically small. Many of them are considering the direction of their development and the adequacy of resources. Combining expertise and strategic cooperation helps in competitive situations, as the offering can be expanded and support resources can be utilized more efficiently among companies. The business we acquired from Pipelife will have its own clear role as part of Vestelli and Auroora Companies’water treatment segment , which will create new opportunities for customers to purchase comprehensive product and service packages from Auroora companies.”
Vestelli is part of the water treatment segment of Aurora Companies.
The transaction continues to build Aurora’s comprehensive water treatment expertise. The transaction with Pipelife is the seventh transaction in Aurora’s water treatment business, and it strengthens both Aurora’s overall expertise and the business opportunities of all companies in Aurora’s water treatment business.
Synergy strengthens growth in Aurora’s water treatment segment
“Auroora’s water expertise is at a high level, and we want to strengthen it further,” says Antti Rauhala, CEO of Auroora Group Plc. “Finland has the cleanest water in the world, and we want it to remain so in the future. Finnish water purification expertise is also of interest in international markets. There has been a lot of discussion in Finland about the export opportunities in the sector, but the resources of individual operators are not necessarily sufficient for demanding export efforts. The synergy benefits offered by Auroora’s operating model open up significantly better opportunities for smaller companies to develop and overcome obstacles to growth, as they do not have to find all the expertise themselves.”
“The design and implementation of water treatment plants involves a huge number of areas, which are challenging for an individual company to solve without large-scale operations. The situation is different when one operator includes both equipment and technology companies, design and service companies and project businesses. Together, these companies can produce products and services for all stages of the life cycle and also raise each other’s level of expertise,” says Mikko Laitinen, CEO of Operon Group Oy, part of Aurora’s water treatment business.
Auroora’s product and service portfolio includes industrial, municipal and B-to-C water treatment expertise. In practice, this means water treatment application areas ranging from individual summer cottages to industrial and municipal sizes.
Additional information
Chairman of the Board Joona Linna, Vestelli Oy
CEO Kai Puustinen, Pipelife Finland Oy
CEO Antti Rauhala, Auroora Group Plc
Auroora Group Plc is a Finnish serial conglomerate with a turnover of 130 million euros. It includes more than 20 SMEs, which employ approximately 600 people. The companies operate according to the serial conglomerate model, i.e. independently with their own name, brand and strategy. The community offers strong industry expertise, support and guidance for business development, as well as financial resources for growth and interesting development opportunities for entrepreneurs and personnel, if necessary. Auroora’s companies are medium-sized SMEs, in which Auroora mainly has a 100% ownership. www.auroora.com
