In its first move away from the shipping and oil industry, Maersk' parent company, A.P. Moller, will acquire the Danish wind turbine supplier KK Group
A.P. Moller Holding, that controls Danish shipping giant A.P. Moller-Maersk, has unveiled its first step into the renewable energy industry with the planned acquisition of Danish wind turbine supplier KK Group.
The acquisition marks a new course for the family-owned company, which has built its business on the shipping and oil industry. On July 10, the company said that it agreed with SoLix Group AB to acquire the supplier of power electronics solutions to the wind turbine industry.
The parties have so far declined to disclose the price of the deal. A.P. Moller Holding will buy the KK Group, whose main activities are through KK Wind Solutions, from the Solix Group, a Swedish private equity.
“As the wind industry has gained momentum globally, KK Wind Solutions must expand its global footprint and follow its customers’ international expansion. With A.P. Moller Holding’s global mindset, network and expertise, we believe we can be a good partner and an engaged owner to support KK Wind Solutions on this exciting journey,” Jan T. Nielsen, Chief Investment Officer, A.P. Moller Holding, said.
The parties have agreed not to disclose the price and other terms of the transaction. The deal is subject to customary regulatory approvals in Denmark and Germany, with an expected closing in the third quarter of 2019.
“Denmark is the leading hub for the wind industry worldwide with significant global growth potential. We look forward to supporting KK Wind Solutions’ further development and growth in this important industry,” Nielsen added.
KK Wind Solutions built one of the world’s first electrical control systems for a wind turbine in the 1970s. It employs about 1,400 people globally and is providing electronic systems to wind turbine giants like Siemens Gamesa, Mitshubishi Vestas and GE Renewables. It generated sales of 1.6 billion Danish crowns ($240 million) in 2018.
In March this year, A.P. Moller-Maersk joined the Global Industry Alliance (GIA) aiming to support low carbon shipping, according to the International Maritime Organization (IMO).