Alfa Laval has announced plans to acquire the Fives Cryogenics business unit, part of Fives Group, for a total fixed purchase price of $US866.6 million (EUR 800 million).
Fives Cryogenics is a world-leading expert in cryogenic heat transfer and pump technologies, headquartered in France.
This proposed acquisition would provide Alfa Laval with a strong portfolio of heat transfer and pump products for gas liquefaction.
Cryogenic technologies are crucial both for traditional gases like LNG and for emerging gas applications like hydrogen and carbon capture.
Fives Cryogenics has more than 60 years of experience designing and manufacturing cryogenic heat exchangers and pumps for gas liquefaction.
The company holds a strong position in the world market with manufacturing facilities in France, China and Switzerland.
Fives Cryogenics employs more than 700 people and in 2024 had revenue of approximately $US216.6 million. Looking forward, the company is expected to generate revenue up to $US270.9 million (EUR 250 million).
Alfa Laval president & CEO, Tom Erixon, said there is strong potential in the Fives Cryogenics business.
“By adding cryogenic technologies to the Alfa Laval portfolio, it would expand our capabilities to move energy efficiency and the energy transition forward," he said.
“We believe that Fives Cryogenics would be an excellent addition to Alfa Laval, and we see strong potential in the business and key synergies between Fives Cryogenics' deep technological expertise in cryogenics and Alfa Laval's strong position in the global gas market.
“We plan to continue to invest in capabilities and growth in the next few years, especially in the key production facility in Golbey, France."
Fives Group CEO, Frédéric Sanchez , said the business will have a strong owner with Alfa Laval.
"In the next growth phase, building on the investments realized and committed by the Fives Group, Fives Cryogenics would be well served by belonging to an industrial group with deep knowledge of the technology and a global presence in the future growth areas,” he said.
“With Alfa Laval, Fives Cryogenics would have a strong owner who I know would develop the company and the team further.”
From an organisational perspective, the cryogenic business would be part of Alfa Laval's Energy Division and operate as a new separate business unit.
Closing of the transaction is subject to the necessary regulatory approvals and is expected during 2025.