Alfa Laval has made its next move to introduce digital services by acquiring weather-based solutions provider StormGeo for US$443M
Sweden-headquartered Alfa Laval, a supplier of shipboard systems, is accelerating its digitalisation strategy through this acquisition from private equity company EQT.
Norway-headquartered StormGeo provides weather-based services to more than 2,200 customers globally in shipping, energy and onshore industries such as healthcare, hospitality, insurance and retail.
Alfa Laval said the purchase price amounts to around Nkr3,630M (US$443M) on a debt and cash free basis. This transaction is expected to close in Q2 2021, subject to customary conditions, when StormGeo will become part of Alfa Laval’s marine business division.
StormGeo provides weather forecasts coupled with asset-specific data, enabling customers to safeguard people, assets and operations while minimising downtime, improving environmental and social governance, performance and saving fuel and resources.
This acquisition highlights a growing trend to provide digitalisation solutions to help shipping companies cut fuel costs and emissions.
Since 2018, StormGeo’s services have helped shipping customers save 2.1M tonnes of fuel, reducing CO2 emissions by 6.2M tonnes.
“The acquisition of StormGeo will be a strong addition to our toolbox of solutions that help our customers address the decarbonisation challenge in the industry,” said Alfa Laval president and chief executive Tom Erixon. “StormGeo fits excellently to our digital acceleration ambition, and we will use its digital and customer experience to level up our offerings and to get deeper experience in the digital space,” he said.
StormGeo chief executive Søren Andersen was equally positive about the prospects in the shipping sector and ambitions of the two companies. “Joining Alfa Laval benefits StormGeo by developing our business through increased geographic and technological expansion. By investing even more into developing leading software and products, we enable our customers to improve efficiency and reduce their carbon emissions while keeping people, assets and operations safe from increasingly extreme weather,” he added.
Since EQT acquired StormGeo in 2014, it has strengthened the company’s market and product positions through digitalisation and invested in six strategic add-on acquisitions, helping shipping companies to reduce their emissions and fuel costs.
Taiwanese shipping group U-Ming has extended its partnership with StormGeo for fleet sustainability and optimisation. It already uses StormGeo’s BonVoyage System weather information and route optimisation software.
Alfa Laval is listed on the Swedish stock exchange and has a 138-year history of serving the food, water, energy and marine industries in around 100 countries. Its technologies are dedicated to purifying, refining and reusing materials, promoting more responsible use of natural resources. These technologies contribute to improved energy efficiency and heat recovery, better water treatment and reduced emissions worldwide.
Voyage optimisation and technologies for reducing emissions will be discussed during Riviera’s series of virtual conferences and webinars during 2021 - use this link to access more details and register for these events