Wärtsilä to Acquire Puregas Solutions

Wärtsilä said it has reached a deal to acquire a Sweden based provider of turnkey biogas upgrading solutions, Puregas Solutions. The transaction is valued (enterprise value) at SEK 280m ($34.5 million) with an additional maximum sum of SEK 70m ($8.6 million) to be paid based on the performance of the business in the coming year.

 

Puregas, a leading player in its field with subsidiary companies in Germany, Denmark, the U.K., and the U.S., utilizes a unique CApure process to convert raw biogas to biomethane and renewable natural gas. 

 

According to Wärtsilä, the acquisition will provide 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.

 

"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.

 

"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.

 

In 2016, Puregas Solutions' turnover was SEK 200m ($24.6 million) and the profitability level was good. The company currently has about 40 employees.