Wärtsilä to Acquire Deutz Marine Engine Service Business
Wärtsilä announced plans to acquire Deutz AG's medium and large marine engine service business for US$198 million. The business consists of original spare parts sales, repair and maintenance for Deutz medium and large marine diesel engines covering the medium- and high-speed engines with outputs ranging up to 7250 kW. The move will increase Wärtsilä Service’s installed engine base by 12 500 MW or 9%; at the time of the announcement the total base was 130 000 MW.
As part of the deal, Wärtsilä will use the Deutz Marine brand name and will be the supplier of original spare parts and services including technical support for the Deutz medium and large marine engines worldwide. Deutz will retain new sales and service of compact engines, stationary power and gas engines. The transaction is scheduled to close in the first four months of 2005 and is subject to competition authority approvals.
"Wärtsilä has consistently and successfully expanded its Service business in recent years by increasing the scope of services and by acquisitions in the Ship Power market - in line with our strategy,” said Wärtsilä's President & CEO Ole Johansson. “The transfer of the Deutz marine service business to Wärtsilä is a logical step to further strengthen our position globally. Deutz marine customers will benefit from Wärtsilä's wide range of services and global network in 60 countries".
Wärtsilä Nederland B.V, in Zwolle will act as the product company for Deutz medium and large marine engines. The Deutz workshops in Hamburg, Harlingen, and Montreal will be taken over by Wärtsilä and remain operative. In other locations Deutz marine service will be integrated with Wärtsilä. The Deutz service portfolio for medium and large marine engines covers the its 628 medium-speed engines, the 616 and 620 high-speed engines, as well as the older medium- and high-speed 716, 816, 232, 234, 601, 602, 603, 604, 528, 440, 441, 444, 500, 501, 510, 540, 640 and 645 engine types.