Alfa Laval acquires Aalborg

04 Jan 2011
Alfa Laval CEO Lars Renström

Alfa Laval CEO Lars Renström

Alfa Laval of Sweden has signed an agreement to acquire Danish group Aalborg Industries Holding A/S for a total cash consideration of SEK 5.0 billion ($747 million).

Aalborg Industries has some 2,600 employees and is expected to generate sales of about SEK 3.3 billion in 2010. The closing of the transaction is subject to clearance from regulatory authorities.

Headquartered in Aalborg, Denmark, the company is a leading provider of critical products, systems and service solutions, today mainly to the marine and off-shore markets, but it also has an increasing exposure to the power industry as well as to other industrial end markets. Its offering includes boiler systems, thermal fluid systems, waste heat recovery systems and inert gas systems. The company complements and further strengthens Alfa Laval’s market leading position by adding a strong product offering that focuses on energy efficiency. As a result, meaningful top and bottom line synergies are expected to be derived from this combination.

Alfa Laval has significant and long-standing expertise in successfully addressing a number of industries, including the marine and off-shore markets, and can provide an attractive platform to continue Aalborg Industries successful development, for instance in applications such as exhaust gas cleaning.

“Aalborg Industries is an excellent fit and I’m very pleased to welcome a strong and well-run company into Alfa Laval”, says Lars Renström, president and CEO of the Alfa Laval Group. “Aalborg Industries complements our offering of energy-efficient and environmental solutions. It represents a significant business opportunity as it not only supports the development of our offering to the marine and off-shore markets but also means we can introduce their product offering to new industrial end markets and customers.”

With the acquisition of Aalborg Industries, Alfa Laval will add market-leading positions in attractive market segments including boilers and thermal fluid systems as well as inert gas systems. These include extensive certification processes, a strong innovation track record and a global service network. The company’s strong manufacturing and engineering presence in fast-growing markets such as China, Vietnam and Brazil, as well as the aftermarket potential generated by a large installed base, are highly attractive attributes.

Over the last five years, Alfa Laval has acquired some 28 companies with total sales, at the time of the acquisitions, of about SEK 5 billion.

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