Canada’s shipbuilding group Davie announced it has finalized the acquisition of the assets of Finland’s Helsinki Shipyard Oy (HSO).
The transaction combines the skills, experience, and capabilities of two leaders in Arctic shipbuilding.
The deal has been nearly a year in the making, starting from December 2022.
By March 2023, Davie exercised an exclusive option to purchase the assets of Helsinki Shipyard. In April a business purchase agreement was signed, and on July 4 Davie secured a new 50-year land lease from the city of Helsinki.
Financial terms of agreement were not disclosed, but Davie said the transaction is supported by a combination of its own funds and €77 million ($110 million) of financing from the Québec government, including an equity investment of €30 million ($43 million) and a loan of €47 million ($67 million).
“A significant proportion of the funds will go to ensuring the shipyard has working capital while it gets up and running and secures new business,” Davie revealed in a statement, adding that the “Canadian government has looked favorably on the potential synergies resulting from the transaction for the construction of icebreakers under the National Shipbuilding Strategy.”
While the Canadian and Finnish shipyard will be separate legal and operating entities, the business headquarters will remain in Québec.
Davie claims the new deal will create opportunities for employees, encourage collaboration, facilitate the transfer of know-how, provide access to resources, and stimulate export potential.
Currently the privately owned group owns Davie Shipbuilding, Canada’s largest and most flexible shipbuilder and a partner in the country’s National Shipbuilding Strategy, and Finland’s Helsinki Shipyard, the world’s leading icebreaker and ice-class shipbuilder.
Wille Rydman, Finland´s minister of economic affairs, said the future of the shipyard and the entire Finnish marine industry looks brighter.
James Davies, Davie president and chief executive, and Co-owner, noted: “Empowered by Helsinki shipyard’s unique know-how, Québec can also more efficiently deliver Canada’s polar icebreaker order book, which is the western world’s largest.”
Kim Salmi, managing director, Helsinki shipyard, pointed out: “This is the best possible news for Helsinki shipyard, our talented workforce and our supply chain. After months of planning, our top priority is to rapidly return this business to what it does best – designing and building world-class ships quickly, efficiently and cost effectively.”
