Cargotec buys TTS
14 February 2018
The MacGregor division of Cargotec has agreed with Norway’s TTS Group to buy its ship cargo cranes, handling equipment and services business. MacGregor, which makes offshore lifting and deck handling equipment, will pay €87 million (US$ 107 million).
Combining the two businesses, Cargotec said “will produce greater scale and diversification and will strengthen MacGregor’s portfolio and market position in key markets…” It will also strengthen MacGregor’s position in China through the strategic joint ventures with Chinese state-owned ship building companies CSSC and CSIC. Cargotec said preliminary estimates show “cost synergies” of up to €35 million ($ 43 million) a year.
TTS Group ASA and its shipyard solution business, TTS Syncrolift AS, are excluded from the deal, Cargotec said.
TTS Group has more than 50 years of experience in the marine industry and a workforce worldwide of around 930 employees. Subsidiaries are in Belgium, Brazil, China, Germany, Greece, Italy, Korea, Norway, Poland, Singapore, Sweden, UAE, USA and Vietnam.
Commenting on the deal, Michel van Roozendaal, MacGregor president, said, “This acquisition is an important step in executing MacGregor’s growth strategy and providing customer-focused solutions in both merchant shipping and offshore segments. The markets are consolidating and MacGregor wants to take an active part in this development. TTS complements MacGregor’s present offering and further strengthens our position. Combining the strengths of these two companies creates exciting opportunities for innovation and technology development during a time of industry transformation. With a large installed base on over 9,000 vessels the TTS portfolio will position us even better for our service business growth.”
Toril Eidesvik, TTS Group CEO, said, “The marine industry is moving towards larger, integrated units with global presence, offering a broader scope of products and services. In order to meet this challenge a combination of TTS’s marine and offshore activities with MacGregor will be an important step in the consolidation process, and is expected to be favourable to all TTS stakeholders in the long term.”
In mid-2016 the Austrian crane, aerial platform and materials handling equipment manufacturer Palfinger attempted to buy TTS via its subsidiary Palfinger Marine. At the time the deal was valued at $72.5 million.