Cargotec subsidiary MacGregor has signed an agreement to purchase TTS Group’s marine and offshore businesses for €87m.
The proposed deal excludes TTS Group ASA and its shipyard solution business, TTS Syncrolift.
It is expected to boost MacGregor’s portfolio and market position in major cargo and load handling equipment sectors, as well as strengthen the company’s position in China via strategic joint ventures with Chinese state-owned shipbuilding companies CSSC and CSIC.
Preliminary estimates have shown that the deal will bring estimated cost synergies of approximately €30m-€35m annually, which are expected to be reached within three years of the deal’s closing.
The arrangement is subject to regulatory approvals from competition authorities, which are due to be received during the third quarter of this year.
MacGregor president Michel van Roozendaal 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.”
TTS Group currently possesses a portfolio of various cargo handling and offshore cranes, RoRo access systems, hatch covers, winches and related services.
The company also offers spare parts, maintenance, inspections, modernisation, conversion and training through its service business.
TTS Group employs around 930 personnel worldwide and operates subsidiaries in Belgium, Brazil, China, Germany, Greece, Italy, Korea, Norway, Poland, Singapore, Sweden, UAE, the US and Vietnam.
It primarily operates through three equal-stake joint venture companies in China.