Kongsberg Maritime Strengths Position by Acquiring Berg Propulsion

Kongsberg Maritime is moving to strengthen its offering in marine propulsion through the acquisition of Berg Propulsion. The acquisition comes just three months after Kongsberg Maritime emerged as a stand-alone public company, and management is calling it a strategic step to expand its position in the newbuild market and create opportunities in the aftermarket and services.

Best known for its strength in the high-value, performance-driven segments of maritime propulsion as well as its services, Kongsberg Maritime highlights that its solutions are deployed on more than 30,000 vessels worldwide, representing approximately one-third of the global fleet. The company completed its spin-off from the Kongsberg Gruppen at the end of April and now reports that the acquisition of Berg Propulsion is a strategic step in strengthening its propulsion portfolio.

Berg Propulsion traces its origins to 1912, saying that it evolved from a small coastal shipyard into a modern provider of advanced marine propulsion solutions. Today, it has an installed base of about 4,000 vessels with a focus on the volume segment of the market, such as general cargo and product tankers.

"This acquisition is central in our growth plan and strengthens our ability to serve a broader range of customers and vessel segments,” said Lisa Edvardsen Haugan, CEO of Kongsberg Maritime. “Berg Propulsion complements our portfolio in a highly attractive way, and together we will deliver greater value through a wider offering, stronger lifecycle support, and shared expertise.”

Saying the deal will bring together two highly complementary businesses, Kongberg Maritime says it will widen its position in the propulsion market, while also creating new opportunities in the aftermarket. Berg Propulsion’s large installed base can be supported by Kongsberg Maritime’s global service network, and they foresee cross-selling opportunities. Berg will operate as a separate brand and standalone business unit.

Kongsberg Maritime declined to reveal the financial details of the acquisition but said the acquisition is priced at approximately the same EV/EBITDA level as the current pricing of Kongsberg Maritime. Berg is reported to have had revenues exceeding $180 million last year with a strong five-year growth record.

At the time of the spin-off, Kongberg Maritime management said the maritime industry is undergoing rapid transformation, driven by digitalisation, efficiency demands, and the transition to more sustainable operations. Today, it told investors that “the wider market picture is good.” It cited shipbuilding orders above last year’s rate, “supporting further strong tailwinds,”

The company has a strong backlog, mostly linked to newbuild activity. It said the aftermarket is slower, with customers slow to make decisions, especially for larger upgrade projects.