Norway-based Kongsberg Maritime ASA on Monday announced that it has signed an agreement to acquire Steerprop, a Finnish designer and manufacturer of azimuth propulsion systems.
Terms of the deal were not disclosed. The transaction is subject to customary regulatory approvals and other closing conditions.
Founded in 2000 by a group of propulsion engineers who had previously worked at Aquamaster-Rauma, Steerprop has become a specialist in high-power azimuthing units for ice operations. It supplies propulsion systems for icebreakers and polar research vessels as well as offshore support vessels and workboats, with an installed base of more than 400 vessels worldwide.
In the U.S., Steerprop is supplying propulsion packages for the four Arctic Security Cutters being built for the U.S. Coast Guard by Bollinger Shipyards as well as a series of new tugboats being built for Maritime Partners by Master Boat Builders.
“For Kongsberg Maritime, the acquisition represents a strategic step in strengthening our position in the growing Arctic and ice-class vessel segment. The combination brings together Steerprop’s specialised Arctic propulsion expertise with Kongsberg Maritime’s global organisation, lifecycle services network, systems integration capabilities, and scale,” said Lisa Edvardsen Haugan, CEO of Kongsberg Maritime.
"Steerprop is growing heavily and [has] become the market leader in the Arctic propulsion segment, and as we considered the next stage of our journey, we carefully evaluated the strategic options for accelerating our growth," said Steerprop CEO Riku-Pekka Hägg. "It became clear that Kongsberg Maritime was the ideal partner, with a strong strategic fit, shared heritage, and local presence.
"Becoming part of Kongsberg Maritime secures the continuation of our legacy, preserves our expertise and know-how, and strengthens our position as the leading provider of azimuth propulsion solutions," Hägg continued. "Together, we'll have the scale, resources, and expertise to innovate faster, serve our customers even better, and pursue our mission with even greater ambition."
The two companies will continue to operate independently until the deal closes. Once the transaction is complete, Kongsberg intends to fully integrate Steerprop in a phased manner.
"By combining [Steerprop's] expertise with Kongsberg Maritime's global reach and integrated solutions portfolio, we believe we can create additional value for customers while strengthening our position in a strategically important market," said Ville Rimpilä, senior vice president for thruster systems at Kongsberg Maritime.
The acquisition is Kongsberg Maritime's second in the propulsion space announced in under two months. On July 12, the company announced it had agreed to buy Gothenburg, Sweden-based Berg Propulsion, a maker of integrated propulsion and electrical systems — a deal that is also still awaiting regulatory clearance.
