The Kongsberg Group ASA said in a statement that it has completed the purchase of Rolls-Royce Commercial Marine. The deal was first announced in July 2018. Rolls-Royce Commercial Marine deals primarily in the commercial marine markets, but one division works with yacht builders on new propulsion systems.
The parties agreed on a value of $656 million for the Rolls-Royce division, though Kongberg said the final purchase price would be determined by the cash, debt and working capital at time of completion of the transaction.
“I have looked forward to this day for a long time,” said Geir Håøy, Kongsberg CEO, in the statement. “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 have spent a long time planning and preparing. Now the work of ensuring a successful integration begins.”
Håøy said Kongsberg is now represented in 40 countries, with about 11,000 employees and annual sales of more than $2.6 billion. The company provides automation, navigation and control systems, propellers, propulsion systems, deck handling equipment and ship design. “Collectively the group will be a leading innovator in the maritime industry where sustainable solutions and digitalization transforms the industry,” said the statement.
“We want to secure a bigger footprint upon our customers’ assets and by adding the Rolls-Royce Commercial Marine product portfolio and expertise to that of Kongsberg Maritime we become more of a complete solutions provider,” said Håøy. “We become more of a ‘one stop shop’ with established expertise across a whole spectrum of systems and solutions. We believe that is a powerful proposition.”