Wärtsilä to Divest its ELAC Nautik Business
The technology group Wärtsilä announces the divestment of shares in Wärtsilä ELAC Nautik GmbH (ELAC Nautik) to Cohort plc, a UK listed company, specialising in defence, security and related market sectors.
ELAC Nautik became part of Wärtsilä as a result of the acquisition of L-3 Communications MSI in 2015. Its main market focus is on hydroacoustic products, including sonars, underwater communication systems and echo systems for small and medium sized military submarines. The company is located in Kiel, Germany and currently employs approximately 120 people. It generates annual revenues of approximately EUR 21 million.
In announcing the divestment, Antti Kuokkanen, Vice President, Electronics, Entertainment and Processing, Wärtsilä Marine said: “Wärtsilä, through its Smart Marine Ecosystem approach, is leading the marine industry’s transition into a new era of high efficiency, greater safety, and outstanding environmental performance. This is our core strategy for the company’s Marine Business, and we are aligning our portfolio to those growth businesses that can drive this transition.”
While the ELAC Nautik business has no clear synergistic link to Wärtsilä’s Smart Marine activities in transforming the marine sector, it fits very well into Cohort’s product mix. The acquisition is in line with Cohort’s stated strategy to accelerate its growth through targeted acquisitions. By adding ELAC Nautik’s products to its portfolio, Cohort will have an exceptionally wide and capable offering in a high-growth market sector.
Andrew Thomis, Cohort Chief Executive, commented: “The acquisition of ELAC is a significant step for Cohort, adding a sixth standalone business to our growing and profitable portfolio. It is highly complementary to our core capabilities in defence and security, with a leading position in the attractive and growing submarine and surface sonar markets, strengthening and broadening the Group’s existing capabilities in maritime systems.”
Subject to approvals, completion of the transaction is expected in the early part of 2020.