Products & services

Woodward to acquire L’Orange from Rolls-Royce for $859 million

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Products & services Products & services; Published: 09 April 2018 09 April 2018

Rolls-Royce plc and Woodward, Inc. jointly announced that they have signed an agreement for Woodward to acquire L’Orange GmbH and its related operations located in Germany, the United States and China (“L’Orange”), for an enterprise value of €700 million (US$859 million). L’Orange is part of Rolls-Royce, the power solutions provider, and specifically its Rolls-Royce Power Systems business.

Transaction scope and highlights

L’Orange is one of the world's leading suppliers of fuel injection systems for industrial diesel, heavy fuel oil and dual-fuel engines.

L’Orange’s 2017 pro forma sales were €244 million, with pro forma underlying EBITDA of €74 million and pro forma underlying operating profit of €64 million. Pro forma post-tax free cash flow for the period was €51 million.

L’Orange has a significant intellectual property portfolio including over 55 active patents, with 75 patents pending.

L’Orange brings a large installed base of industrial equipment delivering a consistent and profitable aftermarket.

L’Orange supplies fuel injection technology for engines that power a wide range of industrial applications including marine power and propulsion systems, special-application vehicles, oil and gas processing, and power generation. L’Orange serves some of the world’s best known specialist diesel engine manufacturers, including Rolls-Royce Power Systems’ leading subsidiaries, MTU Friedrichshafen and Bergen Engines, and other low to high speed engine builders.

Woodward is an independent designer, manufacturer, and service provider of control system solutions and components for the aerospace and industrial markets. L’Orange, which will be renamed Woodward L’Orange, will be integrated into Woodward’s Industrial segment. The acquisition establishes Woodward as a premier technology and system provider of engine control systems to the industrial engine market. Additionally, the highly complementary portfolio allows for further expansion into key industrial segments and geographies, while boosting profitability. L’Orange will remain an important partner and supplier for MTU and Bergen in the future through long-term supply agreements, with an initial term of 15 years, allowing Rolls-Royce Power Systems’ customers to continue to benefit from L’Orange’s high level of expertise, best-in-class service, and innovative R&D.

Warren East, CEO of Rolls-Royce, said: “This transaction builds on the actions we have taken over the last two years to simplify our business. The divestiture of L’Orange enables Rolls-Royce Power Systems to focus on other long term, high growth opportunities and our company to allocate our capital to core technologies and businesses that drive greater returns for the group.”

Wärtsilä acquires Transas to accelerate its Smart Marine Ecosystem vision

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Products & services Products & services; Published: 20 March 2018 20 March 2018

The technology group Wärtsilä is to acquire Transas, a global company headquartered in the U.K. The move will speed Wärtsilä along its path towards its Smart Marine Ecosystem vision. Established in 1990, Transas is a global market leader in marine navigation solutions that include complete bridge systems, digital products and electronic charts. The company is also a leader in professional training and simulation services, ship traffic control, as well as monitoring, and support. Transas leverages the latest in machine learning and AI to create a unified cloud-based platform for managing operations across the entire marine ecosystem.

Transas’ current annual net sales are in the region of EUR 140 million. The company has 22 regional offices worldwide and a distribution network that spans 120 countries. It has a workforce of approximately 1000 employees who will be integrated within Wärtsilä’s Marine Solutions business. The large base of software engineers will play a key role in assisting Wärtsilä with the development of smart products and a digital platform.

This acquisition takes Wärtsilä a significant step closer to achieving its mission of enabling sustainable societies with smart technologies. It will also speed delivery on the company’s promise to disrupt the industry by establishing an ecosystem that is digitally connected across the entire supply chain, through applications that are secure, smart and cloud-based.

The transaction is valued at MEUR 210 (enterprise value) and is expected to be closed during the second quarter of 2018.

Wärtsilä’s Smart Marine Ecosystem is a vision whereby smart vessels connect with smart ports and beyond to deliver three fundamental industry benefits: maximising the use of resources and operational efficiency, minimising environmental impact and risk, and achieving the highest levels of safety and security. Through data integration, greater connectivity and cloud-based technology, Wärtsilä aims to resolve inefficiencies in the shipping sector resulting from overcapacity, sub-optimal fuel consumption, and waiting times at ports and other high-traffic areas.

“Combining Transas with Wärtsilä will bring the Smart Marine Ecosystem many steps forward. We can now connect Wärtsilä’s product portfolio, the biggest in the Marine industry, with Ship Traffic Control, Simulators, Navigation solutions and fleet operation solutions from Transas. The combined package will further improve the way a vessel can sail in the most cost efficient and environmental friendly way for our customers,” says Roger Holm, President, Wärtsilä Marine Solutions.

“It is incredibly exciting to have this opportunity to join the Wärtsilä brand in delivering the future of maritime transport. We share a common vision; one of a safer, more efficient, and more environmentally friendly maritime industry. The Transas team has significant competences in technology, along with a globally recognized leadership position in navigation, simulation and traffic control systems. Adding these to the extensive, world leading Wärtsilä portfolio of services and products, provides an unparalleled opportunity for a new ecosystem for maritime operations,” says Frank Coles, CEO of Transas.

Scanship to install AWP system on the Insignia

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Products & services Products & services; Published: 17 March 2018 17 March 2018

Scanship Holding ASA through its subsidiary Scanship AS, has been awarded a retrofit contract by Norwegian Cruise Line Holdings. The contract is to deliver and install a Scanship AWP system on their Insignia vessel operated under their Oceania Cruises brand. The system will process all grey wastewater sources and black water to the industry highest environmental standard. This standard is specified as IMO Marpol MEPC 227 (64) with chapter 4.2 for special area Baltic Sea including phosphorus and nitrogen removal. The installation will be done during the fall of 2018.

"This will be the thirteenth contract for wastewater retrofit we will be doing for Norwegian Cruise Line Holdings, the second for Oceania Cruises. We are thrilled to continue delivering systems to Norwegian Cruise Line Holdings and supporting their commitment to cleaner oceans and sustainable seafaring," says CEO Henrik Badin in a statement.

Aker Arctic and ICEYE to provide satellite based ice information

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Products & services Products & services; Published: 17 March 2018 17 March 2018

Aker Arctic Technology Inc., the leading designer of the ice class vessels and ICEYE, the leader in synthetic-aperture radar (SAR) technology for microsatellites, today announced an agreement to develop and provide ice information and related services for the customers operating in icy conditions. Combining the new SAR data from the microsatellites with data from maritime environments provides new and cost-efficient service to marine users. During the one-year pilot phase Aker Arctic aims to develop and test the services with its partners. In addition to this, ICEYE is launching two more SAR satellites to continue to increase data availability. The service aims to increase situational awareness in the polar sea areas.

Aker Arctic sees benefits of the new SAR data to improve understanding of the ice conditions in certain specific areas, thus also supporting the development on the new shipping routes and maritime construction. With extensive experience in Arctic sea technology and the greater maritime industry, Aker Arctic will utilize ICEYE’s SAR data, collected with satellites such as ICEYE-X1, to extend and improve services to the customers of Aker Arctic.

ICEYE is on track to launch its next SAR-enabled satellite, ICEYE-X2, as soon as during this summer. Providing high resolution images and extensive global data, ICEYE’s vision is to launch a constellation of up to 18 SAR satellites to allow users to accurately image any point on Earth every few hours.

Fincantieri open service and after sales office in Miami

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Products & services Products & services; Published: 15 March 2018 15 March 2018

As part of its business development strategy in the United States, Fincantieri has established Fincantieri Services USA, a wholly owned subsidiary, based in Miami, Florida, which will be the focal point in the country for all the services and after sales activities on cruise ships of the group, the Italian shipbuilder said in a statement.

Fincantieri Services USA will be the sole front office for cruise customers, offering a wide range of services - particularly all those related to the life cycle management of the vessels - as well as focusing on repairs and refitting.

Fincantieri Services USA will become a reference point for American shipowners in the US services segment, allowing Fincantieri to negotiate long-term agreements in this sector and thus leverage the current and still booming market trend.