Acquisition strengthens Kongsberg Maritime’s integrated propulsion portfolio with the addition of Swedish propulsion specialist Berg Propulsion
Kongsberg Maritime has signed an agreement to acquire Swedish propulsion specialist Berg Propulsion AB, strengthening its position in the global market for integrated marine propulsion technologies.
The acquisition represents a strategic step to strengthen Kongsberg Maritime’s propulsion portfolio. Berg Propulsion is a recognised designer and manufacturer of integrated propulsion and electrical systems for the maritime sector, supplying complete propulsion solutions across a wide range of commercial vessel applications.
Financial details of the transaction are undisclosed, but the acquisition is priced at approximately the same EV/EBITDA level as the current pricing of Kongsberg Maritime ASA.
“This acquisition is central in our growth plan and strengthens our ability to serve a broader range of customers and vessel segments. Berg Propulsion complements our portfolio in a highly attractive way, and together we will deliver greater value through a wider offering, stronger lifecycle support, and shared expertise”, says Lisa Edvardsen Haugan, CEO of Kongsberg Maritime.
The combination of Kongsberg Maritime and Berg Propulsion brings together two highly complementary businesses. While KM has a strong position in high-value, performance-driven segments, Berg Propulsion has built a leading presence in volume segments such as general cargo and product tankers.
“Joining forces with Kongsberg Maritime is an exciting opportunity for Berg Propulsion. Our businesses complement each other well, and together we can create new opportunities for our customers and employees. We look forward to contributing our strengths while also benefiting from Kongsberg Maritime’s global scale and aftermarket capabilities”, says Philip Chaabane, CEO of Berg Propulsion.
At the same time, Kongsberg Maritime will further strengthen its position as a global lifecycle partner for propulsion solutions.
Following completion, Berg Propulsion will operate as a separate brand and standalone business unit within Kongsberg Maritime’s Propulsion & Handling division. This approach ensures that Berg’s strong culture, agility and customer focus are maintained.
“We look forward to benefit from Berg’s culture and speed, while leveraging our global capabilities to support their continued growth and execute on the synergies”, says Per Håvard Siljan Hjukse, EVP Propulsion & Handling at Kongsberg Maritime.
“The transaction will unlock significant potential in the aftermarket. Berg Propulsion’s large installed base and future deliveries can be supported through KM’s extensive global service network. We also see cross selling opportunities, such as our Energy & Control products into Berg Propulsion’s core segments, and Berg’s propeller systems into naval where KM has strong positions”, he continues.
Kongsberg Maritime will benefit from Berg Propulsion’s strong entrepreneurial culture, lean operations and speed in execution. At the same time, Berg Propulsion will gain access to KM’s global scale, systems expertise and structured capabilities.
The combined propulsion portfolio will cover a full spectrum of technologies, including:
- Controllable pitch propellers and thrusters
- Hybrid and electrical propulsion systems
- Integrated vessel control solutions
