September 22, 2008
Wärtsilä buys Singapore ship designer
Wärtsilä is to acquire Singapore naval architecture and ship design company Conan Wu & Associates Pte Ltd (CWA). The deal also includes partnership agreements regarding CWA's business in Malaysia, China and Hong Kong.
The price of the deal is € 23 millions, to be paid in cash, and an additional amount to be paid based on the performance of the business in years 2008-2010.
In 2007, the turnover generated by CWA's businesses was € 10.7 millions and the profitability was on a very good level. CWA has 66 employees in Singapore.
"This deal is a clear demonstration of Wärtsilä's commitment to becoming the leading provider of ship design services in the areas which we specialize in, including offshore and special vessels as well as selected merchant vessels," says Jaakko Eskola, Group Vice President, Wärtsilä Ship Power. "CWA has a strong market position and the company's outstanding know-how is a welcome addition to Wärtsilä's offering. By incorporating CWA into our existing ship design business, we expect to further strengthen the competitiveness of CWA's offering to its customers, and thus CWA's business prospects."
The acquisition complements and broadens Wärtsilä's ship design competence to cover a larger range of vessel types, including smaller, less complicated and more standardized vessels, says Arne Birkeland, Vice President, Wärtsilä Ship Design.
In recent years, Wärtsilä has developed and expanded its ship design capabilities by first establishing a conceptual design unit in 2004 and then acquiring German ship design company SCHIFFKO in 2006. In July 2008, Wärtsilä acquired Vik-Sandvik of Norway. Today, Wärtsilä's ship design activities include operations in more than 10 countries and more than 500 employees.
CWA's core competence is in the design of offshore vessels and tugs, as well as barges and smaller merchant vessels. CWA has a strong market position in South and South East Asia
"Being a part of Wärtsilä will allow CWA to realise its huge potential, both in Asia as well as in other markets. This deal is a great opportunity to further develop our know-how and our business on a global scale," says Dato Conan Wu, Chairman, CWA Pte Ltd.
CWA will be integrated into Wärtsilä Ship Design within the company's Ship Power business. All personnel in Singapore --including the former owners Dato Conan Wu and Mr Mok Kim Terng as well as the rest of the management of CWA-- will continue, as Wärtsilä employees.