Alfa Laval Closes on $2.1 Bln Frank Mohn Deal

Swedish engineering group Alfa Laval has signed an agreement to acquire Frank Mohn AS, a leading manufacturer of submerged pumping systems to the marine and offshore markets, for a total cash consideration of approx. $2.1 billion.

Frank Mohn, headquartered in Bergen, Norway and with approximately 1,200 employees, generated sales of approx $567.1 million and had an order intake of approx $1.01 billion in 2013. The operating margin is significantly above the Alfa Laval average. The acquisition is expected to be EPS accretive as from closing of the transaction.

Frank Mohn’s main product in the marine segment is its unique submerged cargo pumping system, which plays a vital part in maximizing the utilization of product and chemical tankers. The system enables safe and flexible cargo handling performance for quicker turnaround time and fewer voyages in ballast.

In the oil & gas segment, Frank Mohn offers packaged pumping systems for offshore installations including seawater lift, water injection and fire water pumping systems contributing to safe and efficient operations.

The acquisition, which strengthens Alfa Laval’s fluid handling portfolio by adding a unique pumping technology, will further reinforce Alfa Laval’s position as a leading supplier to the marine and offshore oil & gas markets.

After closing, Alfa Laval intends to include Frank Mohn and the product brand Framo in the Marine & Diesel division, headed by Peter Leifland, Executive Vice President, Alfa Laval Group. The company will be kept together and form a new segment in the Marine & Diesel division, under the same management as today.

The activities in the Bergen area in Norway; the new office and sales & service facility at Askøy – as well as production facilities at Fusa, Flatøy and Frekhaug – will become Alfa Laval’s operational centre for marine and offshore pumping systems.

[mappress]
alfalaval, April 7, 2014