Close

Annual Report 2013

q4 2013

q3 2013

q2 2013

q1 2013

Annual Report 2014

q4 2014

q3 2014

q2 2014

q1 2014

Annual Report 2015

q4 2015

q3 2015

q2 2015

q1 2015

q1 2016

q2 2016

q3 2016

Acquisitions
American Hydro Corporation
On 30 June 2016, Wärtsilä acquired the USA and Canada based company American Hydro Corporation from Weir Group plc.
American Hydro is a leading supplier and installer of large equipment upgrades and servicing for the hydroelectric and water distribution industries, specializing in consultancy, design and precision performance enhancements for hydro-turbines and pumps. This acquisition will enable Wärtsilä to grow and expand its existing global Hydro and Industrial service offering.
The following tables summarise the preliminary amounts for the consideration paid for American Hydro, the cash flow from the acquisition and the amounts of the assets acquired and liabilities assumed recognised at the acquisition date.
Preliminary consideration MEUR
Consideration transferred 49
Total consideration transferred 49
Preliminary cash flow from the acquisition MEUR
Consideration paid in cash 47
Contingent consideration 2
Cash and cash equivalents of the acquired companies -4
Total cash flow from the acquisition 44
Provisional values of the assets and liabilities arising from the acquisition MEUR
Intangible assets 5
Property, plant and equipment 20
Inventories 1
Trade and other receivables 8
Cash and cash equivalents 4
Total assets 38
Trade payables and other liabilities 5
Deferred tax liabilities 1
Total liabilities 6
Total net assets 32
Preliminary goodwill 17
The preliminary fair values of acquired identifiable intangible assets at the date of acquisition (including customer relationships and order book) amounted to EUR 5 million. The fair value of current trade receivables and other receivables is approximately EUR 8 million. The fair value of trade receivables does not include any significant risk.
The preliminary goodwill of EUR 17 million reflects the value of know-how and expertise in hydroelectric and water distribution industries. Wärtsilä foresees that the acquisition will strengthen its presence in hydro and industrial services as well as support growth strategy and expansion in renewables, improving Wärtsilä's offering and services towards customers. The goodwill recognised for American Hydro is expected to be mainly tax deductible.
During 2016 the Group incurred acquisition-related costs of EUR 1 million related to external legal fees and due diligence costs. The costs have been included in the other operating expenses in the condensed statement of income.
Eniram Group
On 30 June 2016, Wärtsilä signed an agreement to acquire Eniram, a Finland-based technology company providing the marine industry with energy management and analytics solutions. Ownership of the company transferred to Wärtsilä with effect from 1 July 2016.
Eniram provides the maritime industry with energy management technology to reduce fuel consumption and emissions. Eniram’s solutions range from single onboard applications for trim, speed and engine optimisation to comprehensive fleet analysis. The company’s solutions are installed in over 270 vessels; saving fuel, increasing profitability and reducing harmful emissions. Eniram is headquartered in Helsinki, Finland and has subsidiaries in the UK, the USA, Germany and Singapore. In 2015, Eniram’s turnover exceeded EUR 10 million with 89 employees worldwide. The acquisition of Eniram will enable Wärtsilä to grow and strengthen its existing digital offering and in-house capabilities, specifically in data analytics, modelling and performance optimisation.
The following tables summarise the preliminary amounts for the consideration paid for Eniram, the cash flow from the acquisition and the amounts of the assets acquired and liabilities assumed recognised at the acquisition date.
Preliminary consideration MEUR
Consideration transferred 41
Total consideration transferred 41
Preliminary cash flow from the acquisition MEUR
Consideration paid in cash 41
Cash and cash equivalents of the acquired companies -1
Total cash flow from the acquisition 40
Provisional values of the assets and liabilities arising from the acquisition MEUR
Intangible assets 11
Trade and other receivables 3
Cash and cash equivalents 1
Total assets 14
Interest-bearing debt 2
Trade payables and other liabilities 4
Deferred tax liabilities 2
Total liabilities 8
Total net assets 7
Preliminary goodwill 34
The preliminary fair values of acquired identifiable intangible assets at the date of acquisition (including technology) amounted to EUR 11 million. The fair value of current trade receivables and other receivables is approximately EUR 3 million. The fair value of trade receivables does not include any significant risk.
The preliminary goodwill of EUR 34 million reflects the value of know-how and expertise in energy management technology. Wärtsilä foresees that the acquisition will enable customers to optimise their assets and improve predictability, as well as support them with real-time analytics. Through this acquisition Wärtsilä takes a solid lead in marine digitalisation.
The acquisition-related costs included in the other operating expenses in the condensed statement of income were not significant.
Pro forma
If the acquisitions of American Hydro and Eniram had occurred on 1 January 2016, management estimates that consolidated net sales would have been EUR 3,267 million. The impact in the consolidated operating result would not have been significant. In determining these amounts, management has assumed that the fair value adjustments, which arose on the date of acquisition would have been the same if the acquisition had occurred on 1 January 2016.

Note

Make a note?

Close

For the best experience of our Annual Report, please update your browser to a newer version.