GF has agreed to acquire the VAG Group - an internationally renowned provider of high-quality valve solutions for water supply. With this acquisition, GF sets another strategic milestone on its way to global market leadership in Flow Solutions. At the same time, the company is significantly strengthening its position in the infrastructure sector, particularly in Europe and the Middle East.
The VAG Group, founded in 1872, is a comprehensive supplier of water valves for a wide range of applications such as drinking water supply, wastewater solutions, hydropower, industry and the energy sector. The company employs around 1,000 people and has production and sales locations in Europe, North and South America, India, the Middle East, Southeast Asia, Africa and China. Annual turnover amounts to around 200 million euros. The VAG Group is currently owned by Aurelius Alpha Invest New GmbH - a holding company of the international private equity investor Aurelius.
“Metal valves are a key element in water supply networks. The acquisition of VAG ideally rounds off GF's Infrastructure Flow Solutions portfolio, which will include pipes, valves, repair couplings, jointing technologies and water management solutions,” says Andreas Müller, CEO of GF. “By combining our strong brands and complementary product portfolios, GF strengthens its position in both the aging water infrastructure market and the new construction market while opening new industry segments. This step brings us closer to our vision of becoming the global market leader in flow solutions for buildings, industry and infrastructure.”
Takeover costs GF more than EUR 200 million
The VAG Group offers a wide range of products, including gate valves, butterfly valves and control and non-return valves. These components are used worldwide in sensitive infrastructure systems such as water and transportation pipelines, hydroelectric power plants and seawater desalination plants. With its portfolio, VAG is an ideal addition to GF's existing offering, particularly regarding reducing water losses in urban supply networks.
The purchase price for the acquisition is approximately EUR 213 million (equivalent to CHF 200 million), subject to customary closing conditions. The transaction is expected to be completed by the end of the year. GF will finance the acquisition from current operating cash flow and the planned proceeds from the sale of GF Machining Solutions.
