Rolls-Royce announces intention to acquire Scandinavian Electric Holding
Tuesday, 8 July 2008
Rolls-Royce has announced its intention to acquire Scandinavian Electric Holding, a supplier of system packages for hybrid and diesel-electric marine propulsion systems, continuing its growth strategy in the marine market.
Rolls-Royce has announced its intention to acquire Scandinavian Electric Holding.
Rolls-Royce will purchase 100 per cent of the equity of Scandinavian Electric Holding (SEH) for cash consideration NOK 430 million (£43 million) - subject to regulatory approval from the Norwegian competition authorities. The company will form part of the Rolls-Royce marine business.
The acquisition is expected to increase the sales of Rolls-Royce ship design and equipment packages, especially in the offshore sector, by adding new electrical, automation and control capabilities. This will boost the company's existing ship systems capabilities as the market moves towards greater use of diesel-electric propulsion.
SEH currently employs 150 people, in Bergen, Norway, and Gdansk, Poland, and recorded sales of £40 million in 2007 and has a current order book of £100 million. SEH has a strong track record in offshore supply and service vessels, and will extend system design capability for Rolls-Royce UT Design offshore support and service vessels. The company's capabilities will also be extended to provide new systems offerings in the wider merchant shipping and offshore exploration and production market.
John Paterson, Rolls-Royce President - Marine, said: "This acquisition is an important element of our strategy for growth in the marine sector. The purchase of Scandinavian Electric Holding demonstrates our long-term strategy of adding new capabilities and expanding into integrated power and propulsion systems."
SEH undertakes system design and engineering, testing and commissioning and provides through life support. The company also manufactures some of the switchboards, instrumentation and power management system elements for the systems it sells. SEH also sells stand alone products direct to customers.
1. Rolls-Royce, a world-leading provider of power systems and services for use on land, at sea and in the air, has established a strong position in global markets - civil aerospace, defence aerospace, marine and energy.
2. The Marine business of Rolls-Royce employs over 7,000 people in 34 countries with the main manufacturing centres being in the UK, the Nordic countries, the United States and increasingly Asia.
3. Rolls-Royce has a strong track record in its marine offshore business with around 650 of its UT Design vessels either in service or on order. The vessels - designed by Rolls-Royce - incorporate a range of its marine equipment, including diesel engines, deck machinery, thrusters and automation and control systems.
4. Rolls-Royce is a world leader in marine solutions, providing products, service and expertise to more than 20,000 commercial and naval vessels in the offshore, merchant, naval and submarines markets. It designs ships and its product range includes propulsion systems featuring diesel engines and gas turbines, propellers, thrusters and water jets. Rolls-Royce also provides manoeuvring and stabilising systems and deck machinery.
5. About 40 per cent of marine turnover comes from aftermarket service support, with a global customer support network of sales and service centres in 33 countries.
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