Tuesday, February 4, 2020

Norwegian Maritime Group Reaps the Profits on Thirteen Year Underwater Technology Investment

Largest Builder of US Navy Vessels Snaps Up Subsidiary Company
Shipping News Feature

NORWAY – US – Technology supply group Kongsberg Maritime AS, owner of Rolls Royce Marine, and which provides a range of solutions to the shipping industry, has agreed the sale of its underwater technology company Hydroid Inc to Huntington Ingalls Industries (HII), the largest supplier of vessels to the US Navy.

Kongsberg Maritime acquired Hydroid for $80 million in 2007 and is now selling this US subsidiary for $350 million to the largest builder of US military ships on a debt-free and cash-free basis and as adjusted off an agreed upon working capital. Both parties have agreed that following the deal they will cooperate on future underwater technology and maritime solutions as Egil Haugsdal, CEO of Kongsberg Maritime explained:

“Kongsberg Maritime will continue to aggressively develop technology, including that related to our underwater expertise. We are the global leader in civilian-sector maritime technology, while HII is the world's largest supplier of navy vessels. This alliance will allow a wider range of our maritime solutions for both naval and civilian usage in the United States and the rest of the world.”

Hydroid is a wholly-owned indirect subsidiary of Kongsberg Maritime AS and has its head office in Pocasset Massachusetts in the US. Hydroid builds autonomous underwater vessels and sells them to military and commercial markets, with the US Navy as its biggest customer. The transaction is expected to be completed in Q1 2020 and is subject to customary closing conditions, such as approval by the relevant authorities. Geir Håøy, President and CEO of the Kongsberg Group observed:

"Kongsberg Maritime has driven technology development and created considerable value during the 12 years it has owned Hydroid, and we are capitalising on this now. We are proud to have positioned Hydroid as a leading supplier of small and medium-sized autonomous underwater vessels in the market. We now look forward to work together with HII on new, maritime solutions and, at the same time, strengthening our world-leading underwater environment in Horten,”