Finland’s Caverion acquires TM Voima Group subsidiaries

Caverion, the Finnish company that designs, implements and maintains building technology and industrial services, has announced that it has signed an agreement to acquire TM Voima Group’s substation and transmission line business.

In a statement, Caverion said that decentralised electricity generation and renewable energy transition are creating a significant need for upgrading electricity transmission and distribution systems. As such, the acquisition will strengthen its presence in the energy sector and enable growth, especially in the substation business, the company explained.

"The ongoing energy transition and the increasing demand for renewable solutions require substantial investments into electricity transmission and distribution infrastructure. Caverion is already well positioned to support the energy sector and the additional expertise and resources will enable us to serve our customers even more broadly. We are looking forward to welcoming the skilled professionals to join our team," says Elina Engman, Head of Caverion Industry division.

Acquisition Agreement

In 2021, the revenue of TM Voima Group’s substation and transmission line business amounted to €30.5 million, with 66 employees. Its substation contracts comprise mainly of the design and construction of 110-400kV main grid electricity substations in Finland and in Estonia. In transmission line contracts, the company focuses on the design and construction of 110-400kV transmission lines in Finland.

"With projects becoming larger in scale, more capabilities and resources are required from the players in the field. As part of Caverion, our business is better prepared to respond to this change. Furthermore, the way Caverion values its employees' expertise as well as its customer-oriented operation are fully in line with TM Voima group's way of working," says Kim Tahkoniemi, CEO of TM Voima group. 

"Following the transaction, TM Voima will focus on the development of renewable energy projects in Finland and Estonia."

The purchase price for the acquisition was not disclosed by Caverion, though it added that TM Voima Group’s wind power business was excluded from the acquisition. Closing of the acquisition is subject to approval from the Finnish Competition and Consumer Authority, it pointed out.

The acquisition includes TMV Service Oy, TMV Line Oy and TMV Power Oü, which are part of TM Voima group, the statement concluded.