Industrial engineering group Clyde Blowers has agreed to acquire the wind gear manufacturer Moventas Wind Ltd and the industrial gear manufacturer Moventas Santasalo Ltd. Following the acquisition of the Moventas companies, Clyde Blowers, with its existing David Brown Gear Systems, will be one of the largest gear manufacturing groups in the world.
Clyde Blowers, a U.K. based industrial engineering group, covers a range of industrial engineering activities in the power (renewable energy, conventional, and nuclear), oil & gas, mining and minerals, and other industrial markets. The firm carries out activities across the world with a focus on growing them in fast developing regions such as India, China, and South America. Clyde Blowers knows the global gearing business well because its David Brown Gear Systems manufactures industrial gear and drive systems.
Moventas operates state-of-the-art manufacturing and test facilities and has an extensive product range. It is an independent player in the global wind-turbine gearbox and drive market with products extending across a wide range of wind turbines. The company also has a strong product offering for a wide range of industrial markets and says it is well positioned for future growth.
New and long-term ownership has been sought for Moventas companies since June 2011 when after prolonged financing negotiations, the holding company Moventas Ltd filed for bankruptcy and its operative subsidiaries applied for corporate restructuring. Moventas, however, has made significant investments in its gear production from 2007 through 2008, encouraged by strong demand. But the post finance crisis markets have not supported the investments, and along with its competition Moventas has suffered from excess capacity.
As part of its corporate restructuring, Moventas is exploring possibilities of reorganizing its production in Finland. Therefore, both Finnish Moventas companies started co-operation negotiations on 21 November, 2011.
To ensure the core operations of gear production can remain in Finland, reorganizing and downscaling are necessary regardless of the acquisition. “We have world-leading companies as our customers, high engineering know-how, and quality products, but excess capacity heavily strained our financial status, leaving us loss-making. Implementation of the corporate restructuring program offers us an excellent starting point for future success,” says Moventas CEO Jukka Jäämaa.
Based on the sales and purchase agreement recently signed, the objective is to close the acquisition before the year-end. The business has been acquired for 100 million euros, and has been solely financed by equity investment.
Filed Under: Gearboxes, News