Imtech N.V. (technical services provider in Europe and on the global marine market) is acquiring the Turkish maritime technical service provider Elkon. Elkon has over 200 employees and realises annual revenue of more than 15 million euro. This acquisition contributes directly to the earnings per share.
René van der Bruggen, Imtech’s CEO: ‘With the acquisition of Elkon, Imtech enters the next stage in further internationalising its maritime activities. Elkon is a technologically advanced company in Turkey with an excellent reputation and network in the Turkish maritime industry. Turkey is rapidly developing into an important centre for new building with ships becoming bigger and more complex. The result is a fast-growing need for new technology. This offers Imtech the chance to provide its complete high-quality technological and service package to the Turkish market through Elkon. Moreover, Elkon can export these solutions and services to countries allied with Turkey. By bringing Elkon into Imtech’s marine portfolio, we have the opportunity to create a great maritime track record in Turkey as well as the region.’
Elkon’s profile
Elkon was founded 30 years ago and has since grown into the most innovative maritime technological services provider in Turkey. Originally Elkon was mainly focussed on merchant marine type of ships. In recent years, Elkon is increasingly involved in the realisation of technology wise more complex vessels. The core of its activities consists of electrical services like electrical switchboards and bridge control systems, including the complete onboard electrical installation. In addition, Elkon has specialised in automation of engine rooms and alarm, monitoring and control. Elkon has a renowned reputation and excellent relationships with the Turkish shipbuilders. This industry is concentrated in Tuzla, a suburb of Istanbul – where Elkon is located. The management of Elkon will continue their activities in the coming years, which guarantees continuity.
Maritime strategy
Imtech (Imtech Marine Group) is one of the strongest players in the global marine market with a revenue of approximately 500 million euro and 2,400 employees. Its strategy is focused on growth, including further geographic expansion. Thus, Imtech actively anticipates on changes in the global shipbuilding market. Besides the Middle and Far East, where Imtech already has several local offices and production facilities, Turkey is also rapidly developing into important new center for shipbuilding. Ships built in Turkey are characterised by their competitive quality to price ratio and the Turkish market is evolving from producing relatively simple ships such as tankers and bulk carriers to constructing complex vessels such as mega yachts, naval vessels and offshore related ships. The technological component is thus becoming more important, since these ships require state-of-the-art electrical and automation solutions including electrical propulsion. Although Imtech is already involved in Turkey as technology partner for two (‘Milgem Class’) corvettes and sixteen patrol ships (‘New Type Patrol Boats’) for the Turkish navy, the strategically need to become a more local player became more and more eminent.
Synergy
During the past few years, an intensive partnership developed between Imtech and Elkon, in which both companies are jointly acting as a technology partner for new building programs of navy vessels, mega yachts and offshore related vessels. Now this collaboration is culminating in an acquisition of a strongly synergetic character; Elkon will focus on delivering electrical, automation and electrical propulsion systems and services, while Imtech will act as expertise and technology partner. From this strong local position, Elkon and Imtech can offer a complete package high-quality maritime solutions and services. Moreover, the strong financial position of Imtech will enable Elkon to start export activities to countries on the borders of Europe and Asia that are allied with Turkey. Elkon can also serve as a cost-efficient production location for Imtech’s product range of electrical systems.
Approval by the competition authorities
The acquisition is subject to approval by the Turkish competition authorities.
