HD Hyundai Marine Solution to buy US engine repair firm Goltens for about $247 million
In short
HD Hyundai Marine Solution said on 8 October it had signed a share purchase agreement to buy 100% of Goltens, a US-based specialist in maintaining ship and land power-plant engines, for about $247 million (about 331.5 billion won). Goltens runs 28 repair bases worldwide with about 1,300 skilled staff and services some 5,500 ships. The company said the deal is meant to expand its engine aftermarket business and support HD Hyundai's power-plant business built on its HiMSEN engines.
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HD Hyundai Marine Solution, HD Hyundai's shipbuilding and marine solutions company, has signed a share purchase agreement to acquire all of Goltens, a US-based company that services engines for ships and land power plants, the company said on 8 October. Yonhap, Seoul Economic Daily and Asia Economy reported that the deal was disclosed in a regulatory filing. The price is about $247 million, or about 331.5 billion won; Dong-A Ilbo and several headlines gave a rounded 330 billion won. [ 2 , 3 , 4 , 5 , 6 ]
Goltens was founded in New York in 1940 and specialises in maintenance, repair and overhaul of two-stroke and four-stroke engines used in ships and land power plants. From its New Jersey headquarters it runs 28 repair bases, 19 workshops and 31 legal entities across the Americas, Europe and Asia. With about 1,300 skilled staff, it serves about 2,300 client companies and about 5,500 ships. Outlets noted that it can service engines from many manufacturers rather than a single brand, and Yonhap, Newsis and Asia Economy described it as a top-tier engine maintenance company outside the engine makers themselves. [ 2 , 3 , 4 , 5 , 6 ]
HD Hyundai Marine Solution said the acquisition will strengthen its aftermarket business, its core business, by adding overseas repair bases, a large technical workforce and multi-brand engine maintenance capability. It plans to apply Goltens' customer service systems and know-how across the group. Goltens will keep its existing CEO-led independent management to preserve continuity of its technology and field know-how, while group-level technical exchanges will offer its employees development opportunities, according to Yonhap and Seoul Economic Daily. The company also expects Goltens to expand its engine maintenance business by gaining access to HD Hyundai's global engine portfolio. [ 3 , 4 , 5 , 6 ]
The group also expects the deal to support its land power-generation business built on its own HiMSEN engines. HD Hyundai plans to use Goltens' local network and engine service capability to build a stable power supply network and expand that business. HD Hyundai Heavy Industries signed power-plant supply contracts this year with Eiperion Energy Group (에이페리온에너지그룹) worth 627.1 billion won in April and with Koban Energy Group (코반에너지그룹) worth 956 billion won in August, or 1.5831 trillion won in total. Seoul Economic Daily reported that the group aims to add local maintenance services to its power-plant supply. [ 2 , 3 , 4 , 5 , 6 ]
"This acquisition is a strategic choice to maximise mutual synergy so that both companies can grow together," an HD Hyundai Marine Solution official said, adding that the company would respect Goltens' existing operating philosophy while expanding its business and finding new opportunities in global markets. [ 3 , 4 , 5 , 6 ]
Why it matters
The deal moves HD Hyundai Marine Solution further from selling engines into repair and maintenance, giving it an overseas service network and technicians; Asia Economy said these had previously been hard for the company to build. HD Hyundai also plans to use Goltens' local network to support its HiMSEN-based power-plant supply business, which won two contracts this year.
Key facts
- HD Hyundai Marine Solution signed a share purchase agreement to acquire 100% of Goltens. [ 2 , 3 , 4 , 5 , 6 ]
- The price is about $247 million, given as about 331.5 billion won, or a rounded 330 billion won in some reports. [ 2 , 3 , 4 , 5 , 6 ]
- Goltens was founded in New York in 1940 and has its headquarters in New Jersey. [ 3 , 4 , 5 , 6 ]
- Goltens maintains two-stroke and four-stroke engines for ships and land power plants and can service engines from multiple manufacturers. [ 3 , 4 , 5 , 6 ]
- Goltens operates 28 repair bases, 19 workshops and 31 legal entities across the Americas, Europe and Asia. [ 3 , 4 , 5 , 6 ]
- Goltens has about 1,300 skilled staff serving about 2,300 client companies and about 5,500 ships. [ 3 , 4 , 5 , 6 ]
- Goltens will keep its existing CEO-led independent management. [ 3 , 6 ]
- HD Hyundai Heavy Industries signed power-plant supply contracts this year worth 627.1 billion won in April and 956 billion won in August. [ 3 , 4 , 5 ]
Confirmed by several sources
- HD Hyundai Marine Solution signed an agreement to buy 100% of Goltens for about $247 million. [ 2 , 3 , 4 , 5 , 6 ]
- Goltens has 28 repair bases worldwide, about 1,300 skilled staff and serves about 5,500 ships. [ 2 , 3 , 4 , 5 , 6 ]
- Goltens was founded in New York in 1940 and is headquartered in New Jersey. [ 3 , 4 , 5 , 6 ]
- HD Hyundai plans to use Goltens' network to expand its HiMSEN engine-based power-plant business. [ 2 , 3 , 4 , 5 , 6 ]
- Goltens will keep its existing CEO-led independent management. [ 3 , 6 ]
Still unclear
- When the acquisition is expected to close. None of the documents gives a closing date or mentions required approvals.
- Goltens' revenue and profitability. The documents give no financial figures for Goltens.