Rolls-Royce Commercial Marine becomes part of Kongsberg
- Business & Finance
Norway’s Kongsberg Group has completed the purchase of Rolls-Royce Commercial Marine (RRCM).
Kongsberg announced the acquisition of Rolls-Royce Commercial Marine on July 6, 2018, and completed it on April 1, 2019. As of today, RRCM is an integrated part of Kongsberg.
Announcing the completion on Monday, Kongsberg said that its position as a supplier of technology for the maritime industry had been strengthened.
In a separate statement on Monday, Rolls-Royce said the completion of transaction follows recent clearance from the relevant regulatory authorities.
The parties have agreed a value for Rolls-Royce Commercial Marine of GBP 500 million (on a cash and debt free basis and with working capital at an agreed level). The final purchase price is determined based on Rolls-Royce Commercial Marine’s cash, debt and working capital at time of completion of the transaction.
Kongsberg said: “The group has now become a more complete technology supplier, and has strengthened its competitiveness as a strategically important supplier for shipping companies, shipyards, as well as other customers and partners. A broader product portfolio, complete solutions and increased volume of service assignments, strengthens the position as a global leading technology supplier in the maritime industry. Today, Kongsberg Maritime’s equipment is installed on more than 30,000 vessels worldwide.”
Geir Håøy, CEO of Kongsberg, said: “I have looked forward to this day for a long time. Together we are now well positioned in the market, and our ambition is to lead the development of the future maritime industry globally in close cooperation with customers and partners. We shall be the ocean space expert. We have spent a long time planning and preparing, now the work of ensuring a successful integration begins.”
With the acquisition of RRCM, Kongsberg is now represented in 40 countries, close to 11,000 employees and an annual turnover of more than NOK 22 billion ($2.6B).
Kongsberg Maritime is a provider of automation, navigation and control systems, propellers, propulsion systems, deck handling equipment and ship design.
Executive Vice President of Kongsberg Maritime, Egil Haugsdal, said: “I am looking forward to welcoming 3,600 highly skilled new colleagues. Together we will work for a fast and smooth integration of people, cultures, products, solutions and innovative work.”
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