Finland-based marine equipment and technology firm Wärtsilä has sold Wärtsilä Tank Control Systems business to Svanehøj, a Danish gas pump specialist involved in the design and manufacture of specialized deep well pump solutions within the areas of gas pumps, fuel pumps, products and chemicals, and offshore products.
Wärtsilä Tank Control Systems designs, builds, sells, and services measurement systems for gas tanks on LNG ships, offshore storage, and land-based LNG terminals. Tank Control Systems is also a supplier of safety products and associated systems and solutions for LPG land-based storage and underground cavern storage.
“With the divestment, Tank Control Systems will have access to Svanehøj’s resources and service network, complementing the current installed base and future direction of our safety and gauging solutions,“ says Chris Mais, General Manager of Tank Control Systems.
The business became part of Wärtsilä as a result of the acquisition of Total Automation in 2006 and has approximately 50 employees based in the UK, France and Singapore with a revenue of EUR 7.5 million in 2020.
Tamara de Gruyter, President, Wärtsilä Marine Systems and Head of Portfolio Business says: "We are pleased to have come to an agreement to sell Wärtsilä Tank Control Systems to Svanehøj with whom we believe the business to have a strong future.”
“The acquisition of Wärtsilä Tank Control Systems is an expression of our desire to make Svanehøj a globally leading specialist in producing and servicing equipment for handling all types of liquefied gas – natural gas, biogas and not least the Power-to-X-based fuel of the future,” says CEO of Svanehøj, Søren K. Nielsen.
Closing of the transaction is expected in the fourth quarter of 2021. Wärtsilä did not share the financial details.
500 LNG vessels
"The acquisition of Wärtsilä TCS, historically known as Whessoe, brings Svanehøj unique skills in the production, sale, and service of high-end measurement systems for gas tanks on LNG ships and land-based LNG facilities," Svanehøj said in a separate statement.
"The acquisition of Wärtsilä TCS opens new, exciting opportunities for Svanehøj’s rapidly growing service business, which has almost tripled its revenue since 2018. Svanehøj is already a leading provider of cargo system service for LPG vessels, and the intention is to use the acquisition to achieve a similar position within the larger LNG ship segment," the company said.
“With this acquisition, Svanehøj will now be the preferred service provider for about 500 LNG vessels with tank measurement systems from Wärtsilä TCS. Once on board, it will be attractive for many customers to consolidate their service jobs and make use of our competencies within servicing pumps, compressors, valves, and instrumentation,” says Morten Christian Larsen, Director, Service & Aftersales, at Svanehøj.
With the acquisition, he will lead a service department with more than 70 employees and activities in Denmark, UK, China, and Singapore. With an expected increase in activity of initially 30-40%, the plan is to employ additional staff to support the offices in Denmark and Singapore.