Rolls-Royce announces intention to acquire Scandinavian Electric Holding
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 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.
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