Finland. Cargotec Corporation
| Date of agreement: | 06 May 2014 |
|---|---|
| Country: | Finland |
| Customer: | Cargotec Corporation |
| Amount in EUR: | EUR 50 million |
| Maturity: | 8 years |
| NACE sector / loan type: | Manufacture of machinery and equipment n.e.c. |
Project
The loan has been provided to finance the acquisition of the mooring and loading system business area from the Norwegian firm Aker Solutions. The unit reinforces existing offshore equipment portfolio of Cargotec’s marine cargo and load handling brand MacGregor and strengthen its growth strategy.
The acquired unit enables Cargotec’s MacGregor to access large and growing markets with active relationships across diverse customer groups. Synergy gains will be mainly realised from new sales and efficiency improvement in supply chain.
The acquisition includes activities on owned or leased sites in Norway, South Korea and the United Kingdom.
Cargotec is a leading provider of cargo handling solutions, with operations in more than 100 countries. The company employs approximately 11,000 people worldwide. Cargotec’s brand MacGregor is one of the world’s largest producers of offshore cranes, steering gears and compressors.
Fulfilment of NIB's mandate
In addition to the expected cost and revenue synergies from the reduced sourcing costs and widened client pool, product bundling might also benefit the company’s after-sales service offerings.
Furthermore, it is unlikely that such productivity growth would have been achievable under the previous corporate structures in these two NIB member country companies, as mooring and loading systems were not a core function of Aker Solutions, whose main business is deep-water and subsea oil service segments.
Sustainability summary
The sustainability issues relate to the risk of future liabilities for past activities at the sites included in the acquisition. The land owner or new operator is responsible for activities that cause soil contamination, even if the contamination discovered can be put down to incidents that occurred before the takeover. Therefore, it is important for the company to be aware of any soil contamination at the point of purchase.
