KONGSBERG to take over Rolls-Royce Commercial Marine

Photo: KONGSBERG

The deal will include the acquisition of the marine products, systems, and aftermarket service businesses, but will not cover Bergen Engines and Rolls-Royce's Naval Business.

The parties have agreed a value for Rolls-Royce Commercial Marine of £500m (on a cash and debt free basis and with working capital at an agreed level). The final purchase price, however, will be determined based on the Rolls-Royce Commercial Marine's cash, debt, and working capital at the time of completion of the transaction, which is subject to clearance by regulatory authorities in several jurisdictions.

Rolls-Royce Commercial Marine, represented in 34 countries, has approx. 3.6k employees. Combined, the two companies have the equipment and deliveries associated with around 30k vessels worldwide.

"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. 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," Eivind Reiten, KONGSBERG's Chair of the Board, commented.

Geir Håøy, CEO and President, KONGSBERG, added, "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 strengthening our strategic position with shipowners, shipyards and other customers and partners."

He furthered, "KONGSBERG is a world leader within automation, navigation and control systems, whilst Rolls-Royce Commercial Marine is complementary with its deliveries of propellers, propulsion systems, handling systems and ship design. Both companies hold leading positions within digitalization, ship intelligence and concepts for autonomy. By bringing together this we are positioning us as a significant strategic supplier of complete solutions for the future maritime industry."

Mikael Makinen, President, Rolls-Royce Commercial Marine, summed up by saying, "This deal is good news for Rolls-Royce and KONGSBERG and comes at a time when the maritime industry is at the dawn of a new and exciting era where digital and electrical technologies will transform shipping. Rolls-Royce has been responsible for leading many of those technological advancements, and with combination of great people, market leading technology and a desire by KONGSBERG to take this business to the next level, I'm sure that this business will prosper in the years to come."