Business deal accelerates Auroora’s water treatment business
Finnish serial acquirer Auroora Yhtiöt Oyj’s water treatment business is strengthened and
diversified through an agreement between wastewater system supplier Vestelli Oy and Pipelife Finland Oy.
As part of the deal, rights related to Pipelife Finland Oy’s decentralized wastewater system business are transferred to Vestelli Oy, after which the companies will initiate a strategic contract manufacturing partnership. With this acquisition, Vestelli will expand its wastewater treatment system portfolio and reinforce its position as a total solution provider of wastewater systems. The acquisition will provide Vestelli with a new, strong industrial partner to manufacture it’s wastewater treatment products.
The business arrangement continues to boost Auroora’s comprehensive wastewater treatment service offering. The business transaction with Pipelife is the seventh business arrangement in Auroora’s wastewater treatment segment, reinforcing both the overall expertise and the business opportunities of all companies in Auroora’s wastewater treatment business.
Diversification of offerings and strengthened collaboration
“By selling our business of decentralized wastewater treatment systems to Vestelli, we provide them with an opportunity to grow and strengthen their business in an environment where they excel. Moving forward, Pipelife will focus on its infrastructure and building technology business. This arrangement also enables strategic cooperation between our companies,” says Pipelife Finland’s sales manager of inhouse piping solutions, Mika Rajakangas.
According to Joona Linna, Chairperson of the Board at Vestelli Oy, the arrangement allows Vestelli to diversify its product portfolio and strengthen its operations both in Finland and internationally. “Finnish water industry companies are typically small-scale. Many of them contemplate their direction and the adequacy of resources. Combining competencies and strategic cooperation will help in competitive landscape when the offering can be expanded further and support resources utilised more efficiently. The business we acquired from Pipelife will have its own clear role in Auroora, creating new opportunities for our customers to purchase comprehensive product and service packages from the companies that are part of Auroora.”
Synergy will boost the growth of Auroora’s wastewater treatment sector
“Auroora’s water expertise is at a high level, and we aim to further strengthen it,” says the CEO of Auroora Yhtiöt, Antti Rauhala. “We also have the purest water in the world in Finland, and we want to keep it that way. Finnish competence in water treatment also gains international interest. The export opportunities in the field have been a hot topic of discussion, but the resources of individual companies may not be sufficient for the demanding export efforts. The synergy benefits provided by Auroora’s operational model offer smaller companies improved chances for developing further and overcoming any growth barriers when not all expertise needs to be self-contained.”
“The design and implementation of wastewater treatment plants encompass a vast array of areas, which can be challenging for an individual company without extensive-scale operations. The situation changes when one entity comprises equipment and technology firms, design and service companies, and project-based operations. Together, these different companies can provide products and services to all the stages of the wastewater treatment life cycle while also elevating the competence levels of each other,” says Mikko Laitinen, the CEO of Operon Group Oy, a company that is part of Auroora’s wastewater treatment segment.
Auroora’s product and service portfolio include industrial, municipal, and B2C water treatment expertise, covering applications from individual summer cottages to industrial and municipal scales.
Enquiries
Chairperson of the Board of Directors, Joona Linna, Vestelli Oy, +358 (0)46 600 0421
Chief Executive Officer Kai Puustinen, Pipelife Finland Oy, +358 (0)40 776 7068
Chief Executive Officer Antti Rauhala, Auroora Yhtiöt Oyj, +358 (0)40 549 0800
Auroora Yhtiöt Oyj is a Finnish serial acquirer with a turnover of EUR 130 million. It comprises over 20 SMEs employing around 600 people. In accordance with the serial acquirer model, the group companies operate independently under their own name, brand and strategy. The community provides strong field-specific expertise, support and guidance for business development, financial resources for growth, if necessary, and interesting development opportunities for entrepreneurs and employees. The Auroora companies are medium-sized SMEs which are primarily fully owned by Auroora. https://auroora.com