Aker Kvaerner has signed a letter of intent to acquire 60 per cent of the Finnish boiler plant supplier Noviter Oy.
Aker Kvaerner has signed a letter of intent to acquire 60 per cent of the Finnish boiler plant supplier Noviter Oy. The majority ownership will strengthen the boiler business in biofuel and small-scale segment, especially in Scandinavia and the Baltic countries.
Through the new acquisition, Aker Kvaerner expands its product portfolio in biofuel combustion technology in the group's business unit Kvaerner Power. Kvaerner Power delivers boiler plants for pulp and paper industry and power producers and it is currently known as a supplier of large-scale boiler worldwide.
"The majority ownership in Noviter supports Kvaerner Power's strategy to grow in the power generation segment," says Lennart Ohlsson, president of Kvaerner Power.
Pentti Koivikko, Chairman of the board in Noviter Oy, is confident that the resources of a major company like Aker Kvaerner will secure a strong growth in Scandinavia and in the Baltic countries. The two companies also share a strong confidence in the potential of expanding their businesses in Russia.
The agreement is subject to the approval of the competition authorities. The final agreement will be signed by the end of 2005. The parties have agreed not to disclose the value of the transaction.