Wrtsil Acquires Cedervall, the Swedish Manufacturer of Marine Shaft Seal and Bearing Systems
Wärtsilä has acquired Cedervall, one of the leading manufacturers of shaft seal and bearing systems for the marine industry. Cedervall is headquartered in Gothenburg, Sweden, and the company has subsidiaries in Spain, China and Singapore, with manufacturing facilities in Sweden, China and Spain.
This acquisition strengthens Wärtsilä's leading position in the global marine services market, in line with its strategy. The combination of Wärtsilä's and Cedervall's businesses will create the market leader for oil and water lubricated seals and bearings, as well as for sterntubes.
Cedervall enjoys a strong reputation in the global marine market. The company's key products are sterntube and bulkhead seals, sterntubes and sterntube bearings, intermediate shaft bearings, and propulsion rudders and nozzles. In 2010, the company's annual net sales were SEK 344 million (EUR 39 million) and its profitability was on a good level. The company employs 211 people. Its manufacturing facilities are located in Gothenburg, Sweden, in Zhangjiagang, China, and in Vigo and Porrino, Spain.
"Cedervall's oil and water lubricated seals and bearings, and sterntubes optimally complete the range of products and services in Wärtsilä's seals and bearings portfolio. Furthermore, Cedervall's excellent know-how and expertise will further enhance our competitiveness. Now having all products in the propulsion line in-house, this acquisition strengthens our total propulsion solutions", says Christoph Vitzthum, Group Vice President, Wärtsilä Services.
Cedervall will be integrated into Wärtsilä Corporation. All employees will continue as Wärtsilä employees after the acquisition, including the current owners Anders Lundgren and Henric Lundgren. The value of the transaction is not published.
"For Cedervall, this deal offers an outstanding opportunity to develop and grow the business, in a way that meets the needs of global customers. We could have continued alone, but being a part of Wärtsilä, the leading equipment and after sales services provider with a truly global presence, has clear benefits", says Anders Lundgren, Managing Director, Cedervall.
The acquisition is subject to relevant regulatory approvals, which are expected during the third quarter of 2011.