World News
Wärtsilä's Hamworthy Integration Begins
Wärtsilä Corporation (Wärtsilä) today begins the integration of Hamworthy Plc (Hamworthy) whose acquisition deal was closed on 31 January 2012.
Hamworthy, a global provider of specialist equipment and services to the marine, oil & gas and industrial sectors, is to be be divided into two business units, Flow and gas solutions, and Environmental solutions.
Wärtsilä says the acquisition will bring important growth synergies to Wärtsilä in the offshore, marine gas applications and environmental solutions markets.
The Helsinki, Finland-headed multinational says its target is to double net sales in Flow and gas solutions and Environmental solutions in the next five years.
Today's press release also revealed that the total consideration for the company was £381 million, approximately €455 million or $600 million.
The net price, due to Hamworthy's cash balance at closing, was £326 million, approximately €399 million or $513 million.
The consideration has been paid in full.
The purchase price allocation is currently under evaluation, with preliminary results indicating that the identified intangible assets have a value of €110 million to €130 million.
Those intangible assets will be recognized on the balance sheet as technologies, customer relationships and trademarks.
The preliminary evaluation indicates that annual intangibles amortization will be in the range of €16 million to €18 million.
The transaction is estimated to create a goodwill of between €280 and €300 million.
British-headquartered Hamworthy's financial performance is expected to exceed the latest analyst consensus from the end of October 2011, which indicated net sales of approximately €280 million and an operating result of 8% for the financial year ending in March 2012.
Wärtsilä expects its net sales for 2012 to grow by 5 to 10% and its operational profitability (EBIT% before non-recurring items) to be 10-11%.
These estimates take into account the impact of the Hamworthy acquisition.
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