Kongsberg Gruppen ASA will acquire Rolls-Royce Commercial Marine, a technology business within maritime operations.
The transaction is structured as an acquisition by Kongsberg of the marine products, systems and aftermarket services businesses carried out by subsidiaries of Rolls-Royce plc. The transaction does not include Bergen Engines nor Rolls-Royce’s Naval Business.
The parties have agreed on a value for Rolls-Royce Commercial Marine of £500 million (on a cash and debt free basis and with working capital at an agreed level). The final purchase price will be determined based on Rolls-Royce Commercial Marine’s cash, debt and working capital at the time of completion of the transaction.
“The maritime industry has over the last years experienced demanding market conditions and even though there is still uncertainty we expect the market to be facing growth with technology and innovation being key drivers,” said Eivind Reiten, chair of the Board of Kongsberg. “For more than 200 years Kongsberg has been a pioneer for high technology industrial development with a long-term perspective. The acquisition of Rolls-Royce Commercial Marine is in line with our growth ambitions.”
Kongsberg is represented in more than 25 countries, while Rolls-Royce Commercial Marine is represented in 34 countries. Rolls-Royce Commercial Marine has approximately 3600 employees and an annual turnover of NOK 8.9 billion (2017) and Kongsberg has approximately 7000 employees and a turnover of NOK 14.5 billion (2017). Combined, the companies have equipment and deliveries associated to around 30 000 vessels worldwide, and the installed base and the global presence strengthens an already world leading position with a considerable aftermarket.
“The acquisition of Rolls-Royce Commercial Marine makes us a more complete supplier to the maritime industry. The maritime industry is becoming increasingly globalized and is undergoing considerable technological and market-driven changes. With this acquisition we will be strengthening our strategic position with shipowners, shipyards and other customers and partners”, said Geir Håøy, CEO and president of Kongsberg.