Wärtsilä to acquire DEUTZ marine engine service business

Wärtsilä has acquired the assets of the DEUTZ AG’s medium and large marine engine service business for a price of EUR 115 million, including fast moving spare parts stock.

The business consists of original spare parts sales, repair and maintenance for DEUTZ medium and large marine diesel engines. This portfolio covers medium-speed and high-speed engines with outputs ranging up to 4,000kW. The parties aim to close the transaction in the first four months of 2005 and the deal is subject to competition authority approvals

This deal will increase the installed engine base for Wärtsilä Service by 12,500 MW or by 9%. Today Wärtsilä’s installed engine base is 130,000 MW. Wärtsilä will use the DEUTZ Marine brand name and will be the supplier of original spare parts and services including technical support for the DEUTZ medium and large marine engines worldwide.

This deal will complete the reorganisation of the DEUTZ medium and large engine business allowing DEUTZ Power Systems to focus on power generation

Wärtsilä’s President & CEO Ole Johansson: “Wärtsilä has consistently and successfully expanded its Service business in recent years by increasing the scope of services and by acquisitions in the Ship Power market – in line with our strategy. The transfer of the DEUTZ marine service business to Wärtsilä is a logical step to further strengthen our position globally. DEUTZ marine customers will benefit from Wärtsilä’s wide range of services and global network in 60 countries”.

Wärtsilä Nederland B.V, in Zwolle will act as the product company for DEUTZ medium and large marine engines. The DEUTZ workshops in Hamburg, Harlingen, and Montreal will be taken over by Wärtsilä and remain operative. In other locations DEUTZ marine service will be integrated with Wärtsilä.

The transfer of the marine engine service business comprises the customer information, know-how, use of brand, use of intellectual property, spare parts stock and logistics worldwide. Approximately 200 people from DEUTZ’s organization will move to Wärtsilä in different parts of the world.