SKF is announcing that they have signed an agreement to acquire German-based ship components provider Blohm + Voss Industries (BVI) from Star Capital Partners. SKF will pay 80 million Euros (£65.2 million) for 100 per cent of the equity of BVI and assumes net loans/cash of 18 million Euros (£14.5 million). The transaction is subject to relevant regulatory approvals. The acquisition is in line with SKF’s strategy to further position itself as the preferred application development partner offering a full asset life cycle management approach for marine systems.
Blohm + Voss Industries is a manufacturer of, and service provider for, premium quality equipment for critical marine applications, including shaft components (seals and bearings), stabilisers, and oily water separators. The company has around 400 employees and originates from the Blohm + Voss shipyard, which was founded in 1877. Sales for 2011/2012 were around 100 million Euros (£81.5 million) with an operating margin in line with the SKF Group.
Tom Johnstone, SKF President and CEO, says: “We are excited to have Blohm + Voss Industries become part of the SKF Group. The synergies between the SKF and BVI marine portfolio will support SKF to be an even stronger partner for critical shaft components to the marine industry and marine specific applications for both OEM and end users.”
Martin Johannsmann, CEO Blohm + Voss Industries says: “We are very positive about joining the SKF Group. The combination of our technologies, strategies, and organisations will be a good basis to make SKF an even stronger supplier to the marine industry.”
Summary and rationale:
- SKF entered the marine business in the 1940s and currently offers products, engineering and services to the marine industry, mainly self-aligning bearings and coupling products
- BVI operations and capabilities have a very strong fit with the SKF marine strategy
- BVI products are of similar design parameters and production processes to other SKF seals and bearing products
- Complements SKF’s existing marine product and service range
- Strengthens SKF’s service capabilities and contributes with a complementary market presence, through subsidiaries in Shanghai, Hong Kong, Singapore, Busan, Andover and Kobe and sales agents and service stations worldwide
- Provides a strong customer network with shipyards and ship owners, in addition to SKF’s strong position towards OEMs (propeller makers)
- Establishes SKF as a supplier of marine sealing arrangements and hydrodynamic bearings, which is a significant bearing type in the marine industry
For further information about the acquisition and about Blohm + Voss Industries (BVI), please email or visit the SKF website at www.skf.com/.