Wärtsilä’s Capital Markets Day: Impact of the Hamworthy acquisition

Wärtsilä Corporation, Company Announcement, 29 March 2012

The management of Wärtsilä will today at the Capital Markets Day announce further financial information regarding the Hamworthy acquisition, which was closed on 31 January 2012. Wärtsilä also reiterates its guidance for 2012.

Integration of Hamworthy into Wärtsilä Ship Power has started. Hamworthy will be divided into two business units, Flow and gas solutions and Environmental solutions. The acquisition will bring important growth synergies to Wärtsilä in the offshore, marine gas applications and environmental solutions markets. Wärtsilä’s target is to double Flow and gas solutions and Environmental solutions net sales in the next five years.

The total consideration for the company was GBP 381 million (approximately EUR 455 million), while the net price was GBP 326 million (approximately EUR 399 million) due to Hamworthy’s cash balance at closing. The consideration has been fully paid.

The purchase price allocation is currently under evaluation, with preliminary results indicating that the identified intangible assets have a value of EUR 110-130 million. Intangible assets will be recognised on the balance sheet as technologies, customer relationships and trademarks. The preliminary evaluation indicates that annual intangibles amortisation will be in the range of EUR 16-18 million. The transaction is estimated to create a goodwill of EUR 280-300 million.

Hamworthy’s financial performance is expected to exceed the latest analyst consensus from the end of October 2011, which indicated net sales of approximately EUR 280 million and an operating result of 8% for the financial year ending in March 2012.

Wärtsilä expects its net sales for 2012 to grow by 5-10% and its operational profitability (EBIT% before non-recurring items) to be 10-11%. These estimates take into account the impact of the Hamworthy acquisition.

All Capital Markets Day material will be available after the event on Wärtsilä’s Investor Relations pages. The Capital Markets Day will be webcasted at:
http://storm.zoomvisionmamato.com/player/wartsila/objects/shnb3r78/

Wärtsilä in brief
Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets. By emphasising technological innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2011, Wärtsilä’s net sales totalled EUR 4.2 billion with approximately 18,000 employees. The company has operations in nearly 170 locations in 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland. www.wartsila.com

Wärtsilä Corporation, press release