Twin Disc said it has closed its acquisition of Veth Propulsion Holding BV. Twin Disc paid €52.1 million (approximately $60.8 million) in cash and working capital adjustments for the supplier of marine propulsion products. Veth is expected to have $60 million in sales for 2018.
Twin Disc said the acquisition establishes it as a “leading power control business” for the global marine industry. “The acquisition creates a compelling opportunity with strong earnings accretion and returns on invested capital,” said John H. Batten, president and CEO of Twin Disc, in a statement.
Batten said the two companies have been working closely for more than two years, allowing Twin Disc to develop a “unique insight” into Veth’s business. “This familiarity will allow for an efficient integration of their operations into Twin Disc while accelerating our sales and marketing opportunities,” Batten said.
In business since 1951, Veth Propulsion engineers and manufactures azimuth rudder propellers, thrusters and electronics. It is also a supplier and servicer of diesel engines and generator sets.