Twin Disc acquires Veth Propulsion
Twin Disc, Inc. has acquired Netherlands -headquartered marine propulsion specialist Veth Propulsion Holding, B.V. and its wholly-owned subsidiaries.
The purchase price is approximately $58.6 million (€49.7 million) plus net cash, with potential adjustments based on Veth Propulsion’s working capital as of the closing date, and will be financed through a combination of cash and new debt facilities.
For over 65 years, Veth Propulsion has provided the global marine industry with innovative and leading propulsion and power control products and associated services. Headquartered in Papendrecht, Netherlands Veth Propulsion is a customer-oriented manufacturer of azimuth rudder propellers, thrusters and generator sets, and is a supplier and repairer of diesel engines. In December 2015, Veth Propulsion selected Twin Disc as its distributor for select Asian markets. This unique relationship expanded with a North American distribution partnership in 2016.
John H. Batten, President and CEO of Twin Disc said: “Veth Propulsion strategically expands our global market opportunity, increases our size, scale, and scope within the marine industry, and diversifies our end-market penetration. This is part of our continual strategy to diversify our geographies, markets, and products.”
The acquisition reduces Twin Disc’s dependence on oil and gas, with new technology and sales outside of this market.
“Veth Propulsion has extensive experience in engineering and product development that will enhance our current product portfolio,” continued Batten. “Innovations like Veth Propulsion’s industry-recognized Hybrid Drive and Integrated L-Drive will open new markets and opportunities for growth for Twin Disc.”
For calendar 2018, Veth Propulsion is expected to achieve sales of $60 million (€51 million).
By Jake Frith
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