Information on the Target

Norvestor IX SCSp (“Norvestor”) has finalized an agreement to acquire the steering gear and rudder business from Kongsberg Maritime. This business, operating within Norway's esteemed maritime cluster, will transition into a new entity, committed to providing reliable maneuvering solutions for the global maritime industry, ensuring safe and efficient lifecycle operations through exemplary service, aftermarket, and spare part offerings.

The newly established company will uphold a legacy spanning over 70 years, dating back to 1953. It boasts a rich history with well-known steering gear brands such as Tenfjord and Frydenbø, affirming its solid standing within the maritime sector. Daily, more than 14,000 vessels worldwide depend on Kongsberg Maritime’s steering gears and rudders for safe and efficient navigation across oceans, canals, and harbors.

Industry Overview in Norway

Norway's maritime industry encompasses a broad range of activities, blending traditional shipping with cutting-edge technology and innovation. The country is recognized for its strong maritime heritage, supported by a sophisticated maritime cluster that fosters collaboration between academia, industry, and government. This synergy has ensured continuous advancements in maritime technology and operational efficiency.

The Norwegian maritime sector plays a pivotal role in the global economy, contributing significantly to both GDP and employment. With expertise spanning shipbuilding, maritime services, and advanced maritime technology, Norway has established itself as a leader in sustainable shipping practices. As environmental regulations tighten globally, Norwegian companies are at the forefront of developing green technologies, enhancing their competitive edge in the international market.

Moreover, the maritime industry has seen a steady increase in demand for sophisticated maneuvering solutions, driven by an increase in shipping activities and a growing focus on efficiency and safety. In this landscape, the transition of Kongsberg Maritime's steering gear and rudder operations to Norvestor is timely, aligning well with industry trends and customer needs.

This shift is expected to stimulate growth within Norway’s maritime sector, creating new jobs and fostering innovation. The establishment of the new company will further leverage Norway's technological advancements and skilled workforce, positioning it competitively both domestically and internationally.

The Rationale Behind the Deal

The strategic acquisition by Norvestor is rooted in a vision to harness the strengths of Kongsberg Maritime’s steering gear and rudder business while advancing the operational capabilities of the new entity. By having a dedicated focus on maneuvering solutions, the new company is poised to enhance its product offerings and customer responsiveness.

Furthermore, Norvestor's expertise in the Nordic maritime sector, coupled with its network of industrial advisors, positions it uniquely to lead the new company towards achieving ambitious growth targets. This partnership is not only expected to facilitate expanded market reach but also to improve product innovation in alignment with emerging industry trends.

Information about the Investor

The Norvestor Group is a prominent private equity firm that specializes in lower mid-market buyouts across the Nordic region. Established in 1991, Norvestor has built a reputation for its extensive experience, having executed 93 platform investments and over 500 add-on acquisitions. The firm employs a team of 50 professionals across various offices including Oslo, Stockholm, and London, enabling them to leverage diverse insights and strategies in their investment approach.

With committed capital of close to EUR 5.2 billion, Norvestor focuses on growth companies within the Nordic mid-market that have the potential for a leading position, be it nationally or internationally. Their approach encompasses fostering sustainable growth not only through organic initiatives but also through strategic acquisitions, thereby enhancing the overall value of their portfolio companies.

View of Dealert

The acquisition of Kongsberg Maritime’s steering gear and rudder business by Norvestor presents a promising investment opportunity. Given Norvestor's track record and understanding of the maritime sector, there is potential for significant growth in the newly formed company, Neuver Maritime. The foundation of this venture rests on a well-established portfolio of high-quality products and a dedicated workforce, ensuring continuity and operational excellence.

Moreover, the partnership with experienced leadership, including Jan Terje Aakre as the incoming CEO, further strengthens the company's potential to innovate and expand its market presence. The company's commitment to maintaining high service standards while simultaneously seeking new growth avenues should resonate positively with current and potential customers.

Another compelling facet of this deal is the favorable industry landscape. With increasing demand for sophisticated maneuvering solutions and a shift towards sustainable maritime practices, Neuver Maritime is strategically positioned to capitalize on these trends, reinforcing its competitive advantage.

In conclusion, the acquisition appears to be a well-calibrated move by Norvestor, promising robust returns while fostering innovation in the maritime industry. Should the new company persist in its objectives of efficiency, customer focus, and sustainable growth, it is likely to evolve into a leader in maritime maneuvering solutions.

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