3 Jul 2020
EUR 60 million
Financial institutions and SMEs
|Date of agreement:||11 Aug 2015|
|Amount in EUR:||EUR 100 million|
|NACE sector / loan type:||Manufacture of machinery and equipment n.e.c.|
|Business area:||Industries and services|
The loan has been provided for the acquisition of Germany-based L-3 Marine Systems International (L-3 MSI), a segment of L-3’s Electronic Systems business that is primarily focused on the commercial shipping industry. L-3 MSI supplies electrical systems, as well as integrated navigation, automation, communication, energy distribution and propulsion systems for all types of vessels.
The acquisition, which was completed in May 2015, offers Wärtsilä an opportunity to expand into new product groups. Wärtsilä also gains access to the cruise and ferry market, as well as the US market, which have both been challenging for the company earlier due to the low volumes resulting from its small market share. The move allows Wärtsilä to create a powerful electrical and automation business which is unique in its sector competence and breadth of capabilities.
Originally Finnish, the Wärtsilä Corporation is a global leader in complete lifecycle marine and energy solutions. It has operations in more than 200 locations in nearly 70 countries around the world.
The acquisition widens Wärtsilä’s product portfolio in navigation, automation and electrical power systems in merchant ship markets. The expected synergies will arise from the new technologies brought into company’s core business and expanding the company’s geographical and product markets. Even though the aforementioned benefits affect mainly Wärtsilä, the company’s businesses will have a larger knowledge pool where the acquired knowledge is likely to spill over into NIB’s member area.
While the products of the acquired company are mainly delivered for civil use, some products can be used for military purposes. However, the share of this business area is relatively small.