Finland-headed marine, oil and gas technology major Wärtsilä Corporation has announced that it has "reached an agreement" to acquire Puregas Solutions AB, the Sweden based provider of turnkey biogas upgrading solutions. The acquisition will provide Wärtsilä with added equipment and expertise in biogas upgrading and will complement well the company’s existing position in the biogas liquefaction market.
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Puregas Soultions is a leading player in its field with subsidiary companies in Germany, Denmark, the UK and the US. The company utilises a unique CApure process to convert raw biogas to biomethane and renewable natural gas.
We are acquiring a company with technical know-how, good references, and a strong market position. It provides us, therefore, with a good platform to expand our offering and support our customers with complementary biogas upgrading and liquefaction solutions, said Timo Koponen, Vice President, Flow & Gas, Marine Solutions.
The transaction is valued (enterprise value) at SEK 280 million (≈ EUR 29 million) with an additional maximum sum of SEK 70 million (≈ EUR 7.3 million) to be paid based on the performance of the business in the coming year.
The acquisition will provide Wärtsilä with added equipment and expertise in biogas upgrading and will complement well the company’s existing position in the biogas liquefaction market.
In the larger context, Puregas Solutions’ offering is in close alignment with Wärtsilä’s own gas-based technologies, and the merging of the two companies will expand Wärtsilä’s overall reach in the gas value chain.
Puregas Solutions has grown successfully in recent years and we have now reached the point where it makes sense to achieve further growth through joining forces with a truly global technology specialist. Wärtsilä is a company with a similar philosophy towards creating customer value as our own, and we look forward to an exciting future together, said Jan Molin, CEO, Puregas Solutions.
According to Wärtsilä, the renewable natural gas market is closely aligned to its core business in gas solutions and is expected to achieve solid growth going forward.
In 2016, Puregas Solutions’ turnover was SEK 200 million (≈ EUR 21 million) and the profitability level was good. The company currently has about 40 employees.