Danish gas pump specialist Svanehoj has purchased tank control systems business from Finland’s Wartsila, expanding the firm’s OEM activities and adding new skills to its growing service department for gas tankers.
The acquisition of Wartsila TCS, historically known as Whessoe, brings Svanehoj “unique skills in the production, sale, and service of high-end measurement systems for gas tanks on LNG ships and land-based LNG facilities,” the firm said in a statement.
The TCS business became part of Wartsila as a result of the acquisition of Total Automation in 2006 and has about 50 employees based in the UK, France and Singapore with a revenue of 7.5 million euros ($8.8 million) in 2020.
“The acquisition of Wartsila TCS is an expression of our desire to make Svanehoj a globally leading specialist in producing and servicing equipment for handling all types of liquefied gas – natural gas, biogas and not least the Power-to-X-based fuel of the future”, said CEO of Svanehoj, Soren Kringelholt Nielsen.
Access to large LNG carrier fleet
Svanehoj is already a “leading” provider of cargo system service for LPG vessels, and the intention is to use the acquisition to achieve a similar position within the larger LNG ship segment, according to the statement.
“With this acquisition, Svanehoj will now be the preferred service provider for about 500 LNG vessels with tank measurement systems from Wartsila TCS,” said Morten Christian Larsen, director, service and aftersales.
Furthermore, Christian will lead the service department with more than 70 employees and activities in Denmark, UK, China, and Singapore.
Also, with an expected increase in activity of initially 30-40 percent, the plan is to employ additional staff to support the offices in Denmark and Singapore, the statement said.
New French division
Following the acquisition, Svanehoj said it would establish a new independent business for land-based activities in Calais, France.
Wartsila TCS currently produces measurement systems for land-based LNG systems in Calais.
Subject to closing conditions, Svanehoj and Wartsila expect to finalize the transaction by the end of this year.