Two Finnish pipe groups in late September decided to merge their infrastructure businesses. On 21 September, Uponor (Vantaa / Finland; www.uponor.com) and family-owned KHW Group (Vasaa / Finland; www.kwhpipe.com) announced the joining of their infrastructure pipe businesses into a new joint venture called Uponor Infra Oy, which is to be consolidated in Uponor’s Infrastructure Solutions business unit. Uponor will own a 55.3% share in the jv, with the remaining 44.7% in the hands of KWH.

Financial details of the deal, which still has to be okayed by the competition authorities, were not disclosed. Speaking at a telephone conference, Uponor president and CEO Jyri Luomakoski said the transaction is expected to close in Q1 2013, adding that Uponor Infra Oy’s new management would then work out a specific business plan. The jv will focus on providing infrastructure pipe systems in northern Europe and elsewhere, the two companies announced.

The merger, aimed at raising efficiency and profitability, will bring together northern Europe’s third and fourth largest infrastructure market players. The joint venture will oversee Uponor Infrastructure Solutions’ existing three plants in Finland as well as its operation in Sweden, including sales activities in all Nordic countries, the Baltics and Russia. All in all, Uponor will bring 516 employees to the jv. In 2011, the Uponor unit posted sales of EUR 83m, with an Ebitda of EUR 3.8m. As for KHW’s Pipe business, its dowry includes three production sites in Finland, two in Demark and Canada as well as one each in Sweden, Poland, the Czech Republic and Thailand. The unit’s 1,200 employees posted sales of EUR 169m in 2011, with an Ebitda of EUR 7.4m.

As part of the deal, Uponor also agreed to acquire KHW Pipe’s PEX pipe business, located in Ulvila / Finland. The plant will become part of Uponor’s Building Solutions unit.