Enersense acquires the share capital of Pori Offshore Constructions Ltd, a company specialising in offshore wind power

Through a transaction completed on 4 October 2021, Enersense Works Ltd, a subsidiary of Enersense International Plc, a provider of zero-emission energy solutions, has acquired the entire share capital of Pori Offshore Constructions Ltd. Enersense Works belongs to the Smart Industry segment of Enersense group.   

The business operations of Pori Offshore Constructions Ltd, a Finnish company, are based on products related to offshore wind power and renewable energy. The company’s intellectual property rights and its expertise in implementing complex steel and high-pressure pipeline networks enable Enersense to move up in the value chain for renewable energy production projects, from installation services to comprehensive deliveries. The acquisition will also provide Enersense with new business opportunities in bioenergy, gas, hydrogen and hydropower projects, for example.

Pori Offshore Constructions Ltd has previously delivered the frame for the world’s first floating offshore wind power plant, as well as the world’s first offshore wind power plant pilot project for demanding icy conditions and later the foundations for an entire wind farm operating in icy conditions. The company is applying for a design right for a platform solution it has developed especially for the part of the Baltic Sea that freezes during the winter.  

Jussi Holopainen, CEO, Enersense International Plc: 

“The acquisition is part of the implementation of Enersense’s growth strategy. We are seeking growth both organically and through acquisitions. Pori Offshore Constructions has significant expertise in project implementation related to offshore wind power. This provides Enersense with a new business opportunity in developing zero-emission energy solutions in line with our strategy. We are investing in future market potential, expertise and technology. The Baltic Sea and the North Sea regions offer excellent conditions for producing offshore wind power. In accordance with the EU strategy on offshore renewable energy, the goal is to increase Europe’s offshore wind capacity from its current level of 12 GW to 300 GW by 2050. Investments of nearly EUR 800 million are needed to achieve this goal. Together, Pori Offshore Constructions and Enersense have good opportunities to respond to the rapidly growing demand for offshore renewable energy.”  

Information about the acquisition:  

The turnover of Pori Offshore Constructions Oy in 2020 was EUR 3.8 million (5.5 million in 2019). Its EBITDA in 2020 was around EUR 0.7 million (0.4 million in 2019), and its balance sheet in 2020 was around EUR 7.5 million (18.3 million in 2019). Pori Offshore Constructions Ltd’s quotation base is EUR 1.2 billion, mainly distributed over 2022–24. The company has 133 employees.  

The basic purchase price of the share capital is EUR 1.0. In addition, potential additional purchase price will be paid based on the EBITDA of Pori Offshore Constructions Ltd for 2022–25 in accordance with the terms and conditions of the sale and purchase agreement. The additional purchase price is estimated to be less than EUR 0.5 million. 
 
In connection with the transaction, Pori Offshore Constructions Ltd executed a sale and leaseback arrangement concerning its land area and buildings in Mäntyluoto in Pori. Through the arrangement, it sold the land area and buildings to Suisto Kiinteistöt Ltd, a company owned by the municipality of Pori, for EUR 8.0 million and entered into a five-year lease concerning these. The lease includes Pori Offshore Constructions Ltd’s option for a five-year extension period. The lease liability is around EUR 4.0 million for the five-year period. After the five-year term, the lease will continue until further notice. In connection with the transaction, the parties have agreed that Suisto Kiinteistöt will be responsible for the environmental liabilities related to the land area.   

The purchase price and the additional purchase price will be paid in cash and will be financed by means of Enersense’s cash assets. The transaction does not affect Enersense’s 2021 financial guidance. Pori Offshore Constructions will be reported as part of Enersense’s Smart Industry segment.