The technology group Wartsila has reached an agreement to acquire Puregas Solutions, the Sweden based provider of turnkey biogas upgrading solutions. Puregas is a leading player in its field with subsidiary companies in Germany, Denmark, the U.K., and the USA. The company utilises a unique CApure process to convert raw biogas to biomethane and renewable natural gas. The transaction is valued (enterprise value) at SEK 280m (EUR 29m) with an additional maximum sum of SEK 70m (EUR 7.3m) to be paid based on the performance of the business in the coming year.
The acquisition will provide Wartsila 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 Wartsila's own gas based technologies, and the merging of the two companies will expand Wartsila's overall reach in the gas value chain.
"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," says Timo Koponen, Vice President, Flow & Gas, Marine Solutions.
"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. Wartsila is a company with a similar philosophy towards creating customer value as our own, and we look forward to an exciting future together," says Jan Molin, CEO, Puregas Solutions.
The renewable natural gas market is closely aligned to Wartsila's core business in gas solutions, and is expected to achieve solid growth going forward. In 2016, Puregas Solutions' turnover was SEK 200m (EUR 21m) and the profitability level was good. The company currently has about 40 employees.
