FMSI Norway-based Clean Marine and Indonesian engineering specialist announced that the companies agreed to cooperate to create a leading provider of exhaust gas cleaning systems.
“We are pleased to announce the contemplated merger on the eve of IMO 2020 coming into effect,” said Nils Høy-Petersen, CEO of Clean Marine.
“The transaction will provide additional scale to support our global operations and continued investment in developing the best possible product and services for our customers.”
The combined entity, which will operate under the name Clean Marine, will provide a fully integrated offering, including OEM expertise, significant capacity, fast production times, project management and global after-sales services.
Along with providing financing to their customers through affiliated companies.
The Merger will better position Clean Marine to fulfil the needs of its customers and meet the rising demand for scrubbers (exhaust gas cleaning systems) following the implementation of the IMO 2020 sulphur cap.
Scrubber systems are a diverse group of air pollution control devices that can be used to remove some particulates and/or gases from industrial exhaust streams.
The exhaust gases of combustion may contain substances considered harmful to the environment, and the scrubber may remove or neutralised those.
“This is a significant milestone in FMSI’s history, and we are delighted to announce this intention to combine with Clean Marine,” said Nicolas Busch, shareholder and acting CEO of FMSI.
“We expect the combined company will achieve a substantial increase in market share and create a strong foundation for pioneering compliant scrubber technology for years to come.”
Access to competitive financing of scrubbers can be a bottleneck for many shipowners. Along with price volatility, large fuel spreads and fuel quality concerns are causing owners who had previously not adopted a strategy for compliance to invest in scrubbers.
Approximately 490 Clean Marine employees will serve clients around the world from offices in Oslo, Norway; Varna, Bulgaria; Singapore; Houston, USA; and Batam, Indonesia.
The term sheet forms the basis for the negotiations of the Merger. It is the intention of both companies to execute definitive documentation to complete the Merger swiftly.
The Merger is subject to agreement on the terms of the final transaction agreements, customary due diligence reviews, any required approvals by regulatory authorities and other customary conditions.
Later this year, Clean Marine will begin offering attractive equipment leasing through an affiliated company, thereby enabling shipowners to retrofit vessels with minimal upfront capital expenditure.
Should the companies complete the Merger, Nils Høy-Petersen will become CEO of the combined company. The merged company will have equal shareholdings from the companies’ owners.