July 3, 2008
Wärtsilä swoops on Vik-Sandvik
Fitjar, Norway, based ship design group Vik-Sandvik , until now wholly owned by the Sandvik family, has been acquired by Wärtsilä.
Wärtsilä says the value of the acquisition is EUR 132 millions, with an additional maximum sum of EUR 38 million to be paid based on the performance of the business over the next three years.
In 2007, Vik-Sandvik's turnover was EUR 55 millions and profitability is said to be "on a very good level."
Vik-Sandvik specializes in the design of high-end offshore vessels (such as the Normand Seven, pictured above), as well as product and chemical tankers and more specialized vessels.
It has operations in Norway, Poland, India, Brazil, Serbia, Bulgaria, Turkey, Russia and China. The number of employees is 410.
"From a strategic point of view, the acquisition of Vik-Sandvik is a very important step for Wärtsilä as it brings us closer to our customers, both ship owners and ship yards. We can now enter into dialogue with them at an earlier stage, when the key specifications of a vessel are decided, and this will result in us being able to offer more competitive solutions," says Mr Jaakko Eskola, Group Vice President, Wärtsilä Ship Power.
"Through this major acquisition, we also aim to take a leading position in ship design as an independent activity. We also strongly believe that this new and innovative way of combining ship design know-how and equipment solutions will make us a stronger partner when working together with other ship designers," adds Eskola.
"Vik-Sandvik's excellent know-how of ship design will further expand Wärtsilä's competitiveness. We will be able to offer our customers the best total solutions, regardless of equipment used. Our customers will have the freedom to choose the solution package that best suits their needs," says Mr Arne Birkeland, President, Wärtsilä Norway.
"For Vik-Sandvik, this deal represents an opportunity to develop our business, in a way that meets the requirements of the market", says Mr Svein Sandvik, Managing Director, Vik-Sandvik. "We could have continued alone, but being a part of Wärtsilä, a leading equipment and after sales services provider with global presence, clearly has benefits. We believe this combination will create a unique and new kind of market leader."
Vik-Sandvik will be integrated into Wärtsilä Ship Design within Ship Power. All personnel ---including the management--will continue as Wärtsilä employees.
The acquisition is subject to relevant regulatory approvals, which are expected during the third quarter of 2008.
Currently, Wärtsilä's ship design operations are carried out at its German company, Wärtsilä Ship Design Germany, and future ship design services will be combined within Wärtsilä Ship Design.
Mr Arne Birkeland, 42, will be the head of the Ship Design unit. Mr Birkeland joined Wärtsilä in 2006, and currently holds several other positions within the company. Mr Birkeland is the President of Wärtsilä Norway AS, a Vice President of Wärtsilä Ship Power Technology, and a member of the Ship Power Management team.