Wärtsilä Corporation STOCK EXCHANGE RELEASE 10.2.2006 at 13.00 Finnish time
Wärtsilä Corporation acquires the entire business of Total Automation Ltd, a Singapore-based public marine automation company, and all Total Automation’s shares in its subsidiaries at a price of approximately EUR 61.6 million. Total Automation had sales of EUR 38.5 million in 2004 and has consistently generated EBIT margins in excess of 15%. The company employs over 400 people and has facilities in Singapore, Dubai, France, the UK and China
“The transaction strongly supports Wärtsilä’s strategy to expand our Ship Power and Service businesses by broadening our global service offering”, says Ole Johansson, President and CEO. “It will bring substantial electrical and automation capabilities to Wärtsilä, an organisation with a very strong track record, and further strengthen our position especially in the Far and the Middle East.
Commenting on the transaction, Mr Richard Willenbrock, Chairman of Total Automation Ltd., says: “Our customers will continue to receive the same high level of service as before, but now with the backing of a leading global force in the marine industry and its broad product and service capability. For the company and our employees, Wärtsilä’s market presence throughout the world and its strategy to grow will create new growth and development opportunities”.
In addition to general marine automation, Total Automation has a strong foothold within the offshore and LNG sectors. The company focuses on refit projects and service work. The customers are multinational companies, shipyards and ship owners.
The transaction complements Wärtsilä´s earlier electrical and automation acquisitions in Europe and North America. It enables Wärtsilä to provide a comprehensive automation and electrical offering, strengthening Wärtsilä’s position as a total service provider.
The transaction is expected to close within the 1st half of 2006. The agreement is subject confirmatory due diligence and to the approval of the shareholders of Total Automation Ltd. The majority shareholder, Malaysia-based M3nergy Berhad controlling 53,3% of the share capital and votes, has agreed to vote in favour of the transaction.
For further information please call Mr Tage Blomberg, Group Vice President & Head of Service, tel. +358 10 709 2425