The €132m acquisition price carries an additional maximum sum of €38m to be paid based on the performance of the business over the next three years. In 2007, Vik-Sandvik’s turnover was €55m.The acquisition is a major step in Wartsila’s strategy to strengthen its position as a total solutions provider. By combining ship design capability with its existing offering in propulsion systems and automation, Wartsila sees further growth potential in new lifecycle services and aims to become the leading provider of ship design services in various segments.
The role of ship design is becoming ever more important due to higher performance requirements, more sophisticated systems, and increased integration onboard most vessels. Also, the environmental and emission regulations regarding NOx and CO2 are becoming increasingly stringent. Through this acquisition, Wartsila seeks to deliver competitive solutions that will lead to better total efficiency, improved environmental performance, and reduced life cycle costs.
‘From a strategic point of view, the acquisition of Vik-Sandvik is a very important step for Wartsila 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’, said Jaakko Eskola, group vice president of Wartsila Ship Power.
Vik-Sandvik will be integrated into Wartsila Ship Design within Ship Power. All personnel,including the management, will continue as Wartsila employees. The acquisition is subject to relevant regulatory approvals, which are expected during the third quarter of 2008.
Vik-Sandvik specializes in the design of high end offshore vessels and more specialized vessels. The company has its headquarters in Fitjar, in Western Norway, and operations in Norway, Poland, India, Brazil, Serbia, Bulgaria, Turkey, Russia and China. Vik-Sandvik has up to now been wholly owned by the Sandvik family.
Currently, Wartsila’s ship design operations are carried out at its German company, Wartsila Ship Design Germany, and future ship design services will be combined within Wartsila Ship Design.
