Wärtsilä continues ship design expansion - acquires CWANews // September 24, 2008
Wärtsilä has announced that it has agreed to acquire naval architecture and ship design company Conan Wu & Associates Pte Ltd (CWA), headquartered in Singapore. The deal also includes partnership agreements regarding CWA's business in Malaysia, China and Hong Kong.
The price of the deal is Euros 23 million, to be paid in cash, and an additional amount to be paid based on the performance of the business in years 2008-2010.
In 2007, the turnover generated by CWA's businesses was Euros 10.7 millions and the profitability was very good. CWA has 66 employees in Singapore.
"This deal is a clear demonstration of Wärtsilä's commitment to becoming the leading provider of ship design services in the areas, which we specialize in, including offshore and special vessels as well as selected merchant vessels. CWA has a strong market position and the company's outstanding know-how is a welcome addition to Wärtsilä's offering. By incorporating CWA into our existing ship design business, we expect to further strengthen the competitiveness of CWA's offering to its customers, and thus CWA's business prospects," said Jaakko Eskola, Group Vice President, Wärtsilä Ship Power.
The acquisition of CWA is a further major step in Wärtsilä's strategy of strengthening its position as a total solutions provider, and of being the most valued partner for its customers.
Expansion within ship design is an important move for Wärtsilä, as it brings the company closer to its maritime industry customers. Wärtsilä said it "intends to offer the best and most efficient total solutions, regardless of equipment used."
"This new and innovative way of combining ship design know-how with equipment solutions and services will lead to significant customer benefits in terms of improved efficiency and reduced emissions," said the company.
"The acquisition of CWA expands the geographical scope of Wärtsilä's ship design services. It also excellently complements and broadens Wärtsilä's ship design competence to cover a larger range of vessel types, including smaller, less complicated and more standardized vessels," said Arne Birkeland, Vice President, Wärtsilä Ship Design.
During recent years, Wärtsilä has developed and expanded its offering within ship design, first by establishing a conceptual design unit in 2004.
This was followed by the acquisition of the German ship design company SCHIFFKO in 2006. In July 2008, Wärtsilä acquired the global ship design group Vik-Sandvik of Norway.
CWA's core competence is in the design of offshore vessels and tugs, as well as barges and smaller merchant vessels. CWA has a strong market position in South and South East Asia. As a part of Wärtsilä, CWA has excellent growth potential throughout the region, including China, India and Vietnam.
"Being a part of Wärtsilä will allow CWA to realise its huge potential, both in Asia as well as in other markets. This deal is a great opportunity to further develop our know-how and our business on a global scale," said Dato Conan Wu, Chairman, CWA Pte Ltd.
CWA will be integrated into Wärtsilä Ship Design in the company's Ship Power business. All personnel in Singapore - including the former owners Dato Conan Wu and Mr Mok Kim Terng as well as the rest of the management of CWA - will continue in Wärtsilä's service.