Alfa Laval has signed a binding put-option agreement to acquire the Fives Cryogenics business unit, part of Fives Group, for a total fixed purchase price of EUR 800 million on a cash and debt-free basis.
Fives Cryogenics is a world-leading expert in cryogenic heat transfer and pump technologies headquartered in France. The proposed acquisition remains subject to consultation with the relevant works councils, after which the parties expect to enter into a definitive purchase agreement. This proposed acquisition would provide Alfa Laval with a strong portfolio of heat transfer and pump products for gas liquefaction.
Cryogenic technologies are crucial for traditional gases like LNG and emerging gas applications like hydrogen and carbon capture. Fives Cryogenics has over 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 EUR 200 million. The company is expected to generate revenue of EUR 200-250 million and be neutral to positive to the Alfa Laval group margin.
“By adding cryogenic technologies to the Alfa Laval portfolio, we would expand our capabilities to move energy efficiency and the energy transition forward,” says Tom Erixon, President and CEO of Alfa Laval. “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 invest in capabilities and growth in the next few years, especially in the key production facility in Golbey, France.”
“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. With Alfa Laval, Fives Cryogenics would have a strong owner who I know would develop the company and the team further,” says Frédéric Sanchez, CEO of the Fives Group.
From an organizational 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. The all-cash transaction will be funded by existing liquidity and debt financing. Jefferies acts as financial advisor to Alfa Laval, while White & Case acts as legal advisor.
This is information that Alfa Laval AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out below at CET 07:30 on 21 March 2025.
