Fortaco sells marine and energy business in Finland

Fortaco sells its marine and energy businesses in Kalajoki and Sepänkylä to Componenta for around EUR 2.8 million. Read more about the strategic background and future plans

Kalajoki/Sepänkylä, July 23, 2024 - Fortaco Oy, a subsidiary of Fortaco Group Holdco Plc, has signed an agreement to sell its marine and energy business in Kalajoki and Sepänkylä in Finland to Componenta, an international technology company and Finnish contract manufacturer of metal components. The purchase price amounts to around EUR 2.8 million. This transaction is part of the strategic review of Fortaco's marine, energy and large-scale projects announced on February 28, 2024.

Fortaco's sites in Kalajoki and Sepänkylä

Fortaco's operations in Kalajoki and Sepänkylä produce steel components for the marine and energy industries. The original company was founded in 1974 by Rauma-Repola to produce components for the shipbuilding and marine industries. In 2012, the business was acquired by Fortaco. In 2023, the Kalajoki & Sepänkylä plant generated sales of around EUR 9.6 million and EBITDA of around EUR -1.6 million. In the period from January to June 2024, revenue amounted to around EUR 7.0 million and EBITDA to around EUR 25 thousand. The plant employs a total of around 60 people, all of whom will transfer to Componenta on their current terms.

Statements on the transaction

Lars Hellberg, President and CEO of Fortaco, says: "The sale of our sites in Kalajoki and Sepänkylä is the next step in the strategic review of our marine, energy and major projects. The new owner Componenta has more than 200 years of experience in the metal industry. I am confident that they will be a good new employer for our employees in Kalajoki and Sepänkylä. I would like to thank our customers for their trust and cooperation over the years and the teams in Kalajoki and Sepänkylä for their excellent performance. I wish the team a successful and continuous journey to make tomorrow safer and better."

Sami Sivuranta, CEO of Componenta, adds: "We are very pleased with the extensive know-how in Kalajoki and Sepänkylä and the technology that perfectly complements our current production portfolio. The acquired unit ideally complements Componenta's offering as a contract manufacturer of heavier productions. This transaction will significantly strengthen Componenta's position with strategic customers in the selected industries. This business expansion will also significantly expand our service offering, enhancing our cross-selling potential and comprehensive service capability for strategic customers."

Jyri Paavola, General Manager of Business Site Kalajoki & Sepänkylä, says: "Fortaco Business Site Kalajoki & Sepänkylä is known for its high quality, delivery accuracy and uncompromising professionalism. Our modern welding factory in Kalajoki has a lot of potential for increased volume. I am very pleased that Componenta will be our new owner. The know-how and excellent location of Componenta's engineering workshops will allow us to expand our business into other sectors. For me, this transaction is a win-win situation for both companies."

Status of the transaction

The transaction is still subject to certain customary closing conditions and the companies aim to close on October 1, 2024. The strategic review of Fortaco's marine and energy business in Serbia is still ongoing and is expected to be finalized during 2024.