Wilhelmsen has signed an agreement to acquire the technical solutions business from Drew Marine, a leading manufacturer and provider of advanced performance chemicals and technical solutions to the maritime industry.
"This acquisition offers a unique opportunity to enhance the scale and geographic reach of our marine products division,” says Thomas Wilhelmsen, group CEO about Wilhelmsen’s acquisition of the technical solutions business from Drew Marine. The acquired business will be brought into Wilhelmsen Ships Service.
Image for illustrative purposes only - image courtesy of Wilhelmsen Group
As part of the transaction, the business, people and competence in Drew Marine Technical Solutions will be transferred to Wilhelmsen. Approximately 400 Drew Marine employees will join Wilhelmsen Ships Service upon completion of the transaction.
“This acquisition is among the largest investments in our history,” says Wilhelmsen about the deal with a purchase price of around USD 400 million.
In addition to realising operational benefits, the acquisition is expected to result in a USD 150 million increase in annual total income for Wilhelmsen Ships Service. The transaction will be financed by using existing credit facilities, available cash and new facilities.
“Our aim is to enhance the business and simplify the operations for our customers and partners with the leading people, services, and solutions of the maritime industry,” says Wilhelmsen. “The acquisition strengthens our position as a comprehensive supplier serving the global merchant fleet. Stronger technical competence in combination with higher volumes and efficiency, offers our collective customers and partners attractive benefits in the time to come.”
The final closing of the transaction is subject to regulatory approvals. If approval from relevant bodies is not received, the parties have agreed on a termination fee of USD 20 million.