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A. P. Moller Buys Into Renewables

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By The Maritime Executive 2019-07-10 21:03:36

A.P. Moller Holding, the controlling entity of A.P. Moller-Maersk, has announced a first step into renewables with the acquisition of Danish wind turbine supplier KK Group.

Reuters reports that the parties declined to disclose the price of the deal. A.P. Moller Holding will buy KK Group, whose main activities are through KK Wind Solutions, from Swedish private equity Solix Group.

The A.P. Moller Group reported a 2018 revenue of $40 billion with consolidated assets of $62 billion. The purpose of A.P. Moller Holding is to invest in and develop companies having a positive impact on society.

The change in ownership is not expected to impact the strategic direction of KK Wind Solutions, as A.P. Moller Holding embrace and fully support the current growth strategy and projected plans. During 2018, KK Wind Solutions structurally changed its organizational footprint, increased the activity level in the production facility in India and continued the efforts to introduce robotics and digitalization to the entire company. A range of new technologies and products have been developed within converter systems and controls, software algorithms, electrical pitch systems, uninterruptable power supplies and storage solutions.

“KK Wind Solutions has an impressive history and holds a strong track record as a preferred supplier of electro-mechanical systems to the world’s leading wind turbine manufacturers,” says Jan T. Nielsen, Chief Investment Officer, A.P. Moller Holding. “As the wind industry has gained momentum globally, KK Wind Solutions must further develop its global footprint and follow its customers’ global expansions. With A.P. Moller Holding’s global mindset, network and expertise, we believe we can be a good partner and an engaged owner to support KK Wind Solutions on this exciting journey.”

The transaction is subject to approval from the Danish and German competition authorities. Expected closing is in Q3 2019.