Survitec Group announced a transformational deal with the Marine Safety business of Wilhelmsen Maritime Services AS (WMS), in which WMS will transfer into Survitec all related safety products and services, including Wilhelmsen Technical Solutions, WSS Technical Services and WSS Safety Products.
The combined business will operate under the Survitec Group name.
“Upon completion of the merger, WMS will hold a 20 percent stake in Survitec, which will cement the long-term relationship between our two organizations and ensure Wilhelmsen’s continued and significant involvement in the future success of the combined group,” said Dag Schjerven, President and CEO of Wilhelmsen Maritime Services, who will take a position on the Survitec Group Board
The complementary range of products and services enables complete cradle-to-grave, new-build equipment supply and aftermarket safety solutions including amongst others fire safety, lifeboats, life rafts and evacuation system, Survitec said. The unification will also offer a turnkey sales footprint for Survitec in key new build markets including China, Korea, Japan, Singapore
and Brazil where
Wilhelmsen is integral to the new build value chain. In terms of the financial impact, the merger will create significant cost and revenue synergies based on the greater critical mass of the merged group, according to Survitec.
Brian Stringer, CEO of Survitec Group, said, “This highly complementary merger will be a game changer in the safety and survival solutions sector. The unification of our two world class businesses will allow us to deliver an unrivalled in-house offering that covers the most comprehensive range of solutions in the highly regulated safety and survival industry. Most importantly, the deal will create significant value for our customers and shareholders while providing a platform for the combined group to pursue the addressable global markets worth over £1.5 billion annually. The addition of a highly skilled and experienced workforce that is well established and respected in the industry, further enables Survitec to deliver our customers and partners global reach with local touch.”
The merger builds upon Survitec’s recent acquisition of Survival Craft Inspectorate and Survival Offshore Systems and is a further demonstration of the major consolidation in the safety and survival sector.