Silvasti acquires Nørager
13 December 2017
Specialized transport company Ville Silvasti has acquired Danish wind energy industry transport specialist Frank Nørager & Co.
It is the largest investment Finland-based Silvasti has made to date. The price was undisclosed but the deal will roughly double Silvasti’s annual sales which are forecast at €23 million for 2017. Frank Nørager & Co. is a family-owned business specialising in wind power logistics. Ville Silvasti, majority owner of Ville Silvasti Ltd, has identified wind power logistics as a key focus area.
Combining the two companies makes Silvasti the largest special transport company in northern Europe, Silvasti said, with a turnover close to € 50 million (US$59 million) and a 200-strong workforce.
Silvasti commented on the deal, “In order to grow in Europe, we must expand both geographically and in terms of our equipment. This acquisition combines Silvasti’s strong planning know-how and comprehensive project management with Frank Nørager & Co. A/S’s operative expertise and extensive fleet resources. We consider the acquisition to be a real ‘perfect match’, bringing together competences that complement each other perfectly.”
The two companies are leading special transport companies in their region, specialising in component transport for wind power plants. Capacity will now be significantly increased, Silvasti said, to concurrently carry out demanding special transport projects for the industrial sector across Europe.
The combined fleet is around 100 truck tractors, more than 200 trailers, around 50 escort vehicles and there are around 180 employees. Together there are around 150 axle lines of Scheurle modular trailer.
Similarities between the two companies helped seal the deal, Silvasti said. Both are family owned and each was started as a one-truck, owner-operator business. Both owners have extensive experience and in-depth knowledge, all the way through from the operator level. Silvasti said, “This ensures that our clients are provided with short response times and flexible services that are based on a comprehensive understanding of the industry. Both companies also have very good reputations and are well-known for the high quality and reliability of their operations. As such, the clients of the expanded Silvasti Group can look forward to working with a versatile service provider whose services are now even more professional than before.”
Frank Nørager, owner, is looking for retirement but will stay on for some time, Silvasti said. The company name will also be retained and it will operate as part of the Silvasti Group.
With the acquisition, Mikael Schmidt, a director at Nørager, will take over the Danish company as CEO. He commented, “We were fast approaching a generational handover and were considering our options. Our two companies have very similar backgrounds and values, making the deal with Silvasti a very natural choice.”
Silvasti said he sees a good and long future with work in the wind energy industry. “Wind power represents a very interesting subsection of the special transport industry, typically involving large numbers of very demanding transport projects. Wind power is also one of the fastest-growing forms of renewable energy, which will play a major role in the future of energy production. Wind power plants are currently being built in many new areas around the world. It is important for us to contribute to this development and do our part for the creation of a cleaner world,” says Silvasti.
Silvasti has subsidiaries in Sweden, Norway and Russia but said he is also looking further afield geographically. Nørager operates in continental Europe and Scandinavia and has operations in Germany and Poland.
Silvasti concluded, “We can now provide special transport services even more flexibly and competitively than before. The staff of both companies represent the industry’s elite, with strong expertise and extensive experience. I am very eager to see just what this crew can accomplish together.”