Outotec to acquire Kempe Engineering's aluminum smelter technologies as well as service and spare parts businesses in the Middle East and Africa
Outotec has agreed to acquire Kempe Engineering's aluminum smelter technologies as well as its service and spare parts businesses in the Middle East and Africa. The acquisition is expected to be closed in February 2015. Kempe is an Australian privately owned company providing technology for aluminum smelters, operation and maintenance services, modernization services and spare parts. The parties have agreed not to disclose the acquisition price.
The acquisition of Kempe will strengthen Outotec's technology and service business in the Middle East and Africa, doubling the installed base and providing new capabilities to expand the service business in the region. Kempe will also bring additional best cost country sourcing and a manufacturing facility in the United Arab Emirates. A large amount of Kempe's proprietary equipment will complement Outotec's aluminum product portfolio and enable further growth of Outotec's equipment and spare parts business globally.
"I believe the acquisition by Outotec will enhance the prospects of the combined businesses by increasing the service offering to our clients as well as future opportunities for all staff due to the scale and the magnitude of the Outotec global organization and growth plans," says Grant Kempe, founder and Managing Director of Kempe Engineering.
"The Kempe acquisition supports our technology and service business growth especially in the Middle East and Africa," says Outotec CEO Pertti Korhonen. "Through a larger installed base, joint technology offering and new service capabilities we expect to boost new projects, modernization, operation and maintenance as well as spare parts businesses globally. With our combined resources we will be closer to our customers and a stronger provider of sustainable life cycle solutions in the aluminum industry."
The annual sales of the acquired businesses are approximately EUR 25 million, and Outotec plans to double the business volume in the next few years. Nearly 400 of Kempe's employees will join Outotec team of nearly 5,000 employees worldwide.