In a deal that has been valued at around 150 million Euros, ThyssenKrupp sold off its super yacht the Blohm + Voss along with two other ships to Star Capital the British buyout firm so that the German steelmaker can shift their focus solely onto building military vessels.
The newly announced sale is part of ThyssenKrupp’s 10b euro divestment plan that will help the company lower the amount of debt it holds and will also allow it to create a spinoff of its division for stainless steel production.
Up for sale as part of the deal are the civilian shipyards of ThyssenKrupp for ferry cargo, fast passenger, and container ships alone with its old yachts after the recession saw new orders start to dry up and new competition from Asia decreased the amount of business that it received.
The Star Capital sale is the second attempt of ThyssenKrupp to sell its steel yards as it previously attempted to sell three of its units toAbu DhabiMar in a deal that fell through. Under this previous deal the yacht building yards would all be sent overseas, but now the new deal should be completed by the close of the first few months of 2012.
A source that is close to the business stated that the assets of Blohm + Voss the yacht building component are likely to be worth about 150 million Euros alone, but both companies have declined to talk about the price. Die Welt, the German newspaper also reported that Thyssen could see as much as 100 million Euros as a result of the sale with around 30 million of those Euros being paid in cash which should help the company get back up on its feet again and out from underneath their debtors.
After the yacht building components are sold, the Marine Systems at ThyssenKrupp will consist of itsKielnaval shipbuilding yards inGermany, and its shipyards in KockumsSweden. It also will still have its equipment, project management, and design capabilities for military vessels at the Hamburg Blohm +Voss Naval yards.
Generally the company makes frigates and submarines for the country ofGermanyas well as some of its partners in NATO. TheKielshipyard alone is 165 years old and is also where the first modern submarine was created as well as the U-boats that were used by Nazi Germany during WWII.
Star Capital has not clearly defined how they will use their new Blohm + Voss units, but the CEO Tony Mallin did state that they planned to invest quite a bit into the units.
He added that many Asians are interested in yachts that come from Blohm + Voss and that the company is known as a market leader when it comes to making ship components for yachts that are already out there. In addition, Mallin also noted that the oil tools business from the repair shop should be profitable as many oil companies are now looking for drilling rigs.