Alfa Laval Strengthens Global Energy Portfolio with Strategic Acquisition of Fives Cryogenics

Alfa Laval Strengthens Global Energy Portfolio with Strategic Acquisition of Fives Cryogenics

(IN BRIEF) Alfa Laval has announced a binding put-option agreement to acquire Fives Cryogenics from Fives Group for EUR 800 million on a cash and debt-free basis. Fives Cryogenics, based in France, is a leader in cryogenic heat transfer and pump technology with a 60-year history and operations across France, China, and Switzerland. The acquisition, pending consultations with works councils and subject to regulatory approvals, is expected to further bolster Alfa Laval’s energy portfolio, particularly in the areas of LNG, hydrogen, and carbon capture. Alfa Laval’s CEO, Tom Erixon, emphasized that this strategic move is designed to enhance energy efficiency and support the energy transition, with planned investments in production capabilities, especially in Golbey, France. Fives Group’s CEO, Frédéric Sanchez, noted that Fives Cryogenics will benefit from being part of a globally recognized industrial group. The deal is slated for closure in 2025 and will be funded via existing liquidity and debt financing, with advisory support provided by Jefferies and White & Case.

(PRESS RELEASE) LUND, 21-Mar-2025 — /EuropaWire/ — Alfa Laval is pleased to announce that it has executed a binding put-option agreement to acquire the Fives Cryogenics business unit from Fives Group, at a total fixed purchase price of EUR 800 million on a cash and debt-free basis. Fives Cryogenics, recognized as a global leader in cryogenic heat transfer and pump technologies, is headquartered in France. The transaction is currently pending consultation with the relevant works councils, after which both parties anticipate signing a definitive purchase agreement. This strategic acquisition is set to enhance Alfa Laval’s portfolio by adding a robust array of heat transfer and pump solutions tailored for gas liquefaction.

Cryogenic technology plays a vital role not only in established applications such as LNG but also in emerging sectors including hydrogen and carbon capture. With over 60 years of experience, Fives Cryogenics has built a formidable reputation in designing and manufacturing cryogenic heat exchangers and pumps for the liquefaction of gases. The company maintains a dominant position in the global market, supported by manufacturing operations in France, China, and Switzerland. Employing more than 700 individuals, the company reported revenues of approximately EUR 200 million in 2024 and is projected to achieve revenues in the range of EUR 200-250 million in the near future, while maintaining a neutral to positive impact on Alfa Laval’s group margins.

Tom Erixon, President and CEO of Alfa Laval, commented, “Integrating cryogenic technologies into our portfolio will significantly enhance our ability to drive energy efficiency and support the global energy transition. We are confident that Fives Cryogenics represents an outstanding complement to our existing capabilities, given the strong synergies between their expertise in cryogenics and our established market position in the gas sector. Over the coming years, we will continue to invest in growth and production capabilities, particularly at our key facility in Golbey, France.”

Frédéric Sanchez, CEO of the Fives Group, added, “As Fives Cryogenics enters its next phase of growth, aligning with an industrial group that possesses deep technological know-how and a worldwide presence in burgeoning sectors is essential. With Alfa Laval, the business will have the backing of a robust owner committed to further developing the company and its talented team.”

From an organizational standpoint, the cryogenic unit will be incorporated into Alfa Laval’s Energy Division, functioning as a distinct business unit.

The transaction is subject to the necessary regulatory approvals and is expected to close in 2025. The acquisition will be executed entirely in cash, financed through existing liquidity and additional debt financing. Jefferies has been appointed as the financial advisor to Alfa Laval, with White & Case serving as the legal advisor.

This announcement is made in compliance with the EU Market Abuse Regulation and was published at CET 07:30 on 21 March 2025 by the designated contact person for Alfa Laval AB (publ.).

Media contacts

Johan Lundin
Head of Investor Relations, Alfa Laval
Mobile: +46 730 46 30 90
johan.lundin@alfalaval.com

Sara Helweg-Larsen
Head of Communications, Alfa Laval
Mobile: +46 730 35 80 98
sara.helweglarsen@alfalaval.com

This is Alfa Laval   

The ability to make the most of what we have is more important than ever. Together with our customers, we’re innovating the industries that society depends on and creating lasting positive impact. Alfa Laval is a leading global provider of first-rate products in the areas of heat transfer, separation and fluid handling. We’re set on helping billions of people to get the energy, food, and clean water they need. And, at the same time, we’re decarbonizing the marine fleet that is the backbone of global trade.

We pioneer technologies and solutions that enable our customers to unlock the true potential of resources. As our customers’ businesses grow stronger, the goal of a truly sustainable world edges closer. The company is committed to optimizing processes, creating responsible growth, and driving progress to support customers in achieving their business goals and sustainability targets. Together, we’re pioneering positive impact.

Alfa Laval was founded 140 years ago, has customers in 100 countries, employs more than 22,300 people, and annual sales were SEK 66.9 billion (5.8 BEUR) in 2024. The company is listed on Nasdaq Stockholm.
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SOURCE: Alfa Laval