The companies have signed a memorandum of understanding about the acquisition, and the transfer of assets could take place in the first quarter of next year.

The deal would bring three business divisions in the UK - Valmet Atlas' two Bedfordshire-based manufacturing operations, which make the Titan and Midi slitter rewinders, plus Heywood-based web coating and metallising equipment manufacturer Valmet General - under the Bobst umbrella.

Rotomec, the gravure and flexo press manufacturer based in Italy, would also transfer. The Metso Converting group of companies has around 800 staff and had a combined turnover in 2001 of 112m (e176m).

Joseph Santoro, Bobst Group's treasurer and investor relations manager, said the planned acquisition was in line with Bobst's strategy to boost its flexible packaging interests from below 10% of present turnover to over 20%. Bobst also has interests in the folding carton and corrugated board sectors.

Story by John Davies