December 15 ,2021
Scana merges with PSW Group
Based on hundreds of years of industrial history, listed Scana ASA has sharpened its focus and become a strong equipment and service supplier to the maritime industries in recent years. Now, the company is taking a new step in this initiative by merging with Bergen-based PSW Group, a leading player in electrification and shore power as well as a major supplier of products and services to the offshore and maritime industries.
Merger provides a unique market position in the green shift
“The entire maritime industry is in transition to more sustainable operations. Our goal is to create a partner for this green shift, both in shipping, the offshore industry, the energy industry, and the aquaculture industry,” Styrk Bekkenes, CEO of Scana, and Oddbjørn Haukøy, CEO of PSW Group, state.
“The basis for the merger is that PSW has products and services that we consider extremely exciting for the transition to a more sustainable society, and which have significant market potential both in Norway and internationally. To include this business in Scana gives us the opportunity to further develop PSW’s portfolio, it provides a basis for new acquisitions, and it gives Scana a unique position in the market,” Bekkenes elaborates.
“At PSW, we believe Scana is a perfect match for us. Both companies know each other well, and Scana’s new business model suits us perfectly. We are a young company that has grown rapidly thanks to innovative and good solutions that the market has embraced, and for us it is positive to be part of a total supplier for the maritime green shift that has a clear and distinct direction for the road ahead,” says Haukøy, who will join Scana’s management team.
With the merger the largest owner of PSW, the Herkules Capital investment fund, becomes a significant owner in Scana. Hercules will also be represented on the board, ensuring valuable continuity through the consolidation.
“Since Herkules bought PSW in 2014, the company has grown significantly. It has developed from being a pure oil service company to now also being a leading player in the green shift. A merger with Scana is a good industrial solution, and with stock exchange listing you get a good basis for continuing the sturdy growth,” says Morten Blix, senior partner in Herkules Capital and future board member of Scana.
The two organizations that will be coming together in one powerful global company with headquarters in Bergen are both relatively young and dynamic. In total, the new joint organization will have more than 450 employees.
“Looking ahead, we believe we will see more consolidations in the market. By merging these two strong industrial names into one strong and adaptable unit, we will maintain our leading position and be an active player in the market for years to come,” Haukøy and Bekkenes say.
Leading in electrification
Both PSW and Scana have already made significant contributions to the green shift through deliveries of finished products and the development of new technology. PSW is the leading player in Europe for shore power and has in the past year won several contracts for the delivery of such technology in Europe, as well as to the new Northern Lights carbon capture plant at Kollsnes, Norway. The company also has a strong position in maritime and land-based solutions for energy storage, including a full-scale test centre for battery systems and hydrogen at its facilities at Ågotnes. In recent years, the company has been a significant supplier to over 25 different hybridization projects on offshore vessels.
Recently, PSW has developed intelligent battery storage systems for land-based power optimization and is now working on the development of the first shore power system powered by hydrogen. This is of great international interest and PSW is currently able to offer hydrogen-powered shore power systems to ports with low capacities in existing power supply.
“The global electrification of industry and society in general is going fast, and in recent years we have developed and designed innovative solutions to meet this market. Our position as an established technology supplier and integrator in the green shift is now very strong. With the consolidation of PSW and Scana, we have even better opportunities to grow in step with the market and to strengthen our international presence,” says Eirik Sørensen, General Manager of PSW Power & Automation.
Scana has lately made a name for itself particularly with mooring technology to floating offshore wind and the aquaculture industry. For example, its portfolio company Seasystems has delivered 33 mooring brackets which are installed on the concrete foundations for the 11 wind turbines in Equinor’s Hywind Tampen development. Seasystems has also delivered mooring technology to Norway Royal Salmon’s “Arctic Offshore Farming” unit, Nordlaks’ offshore fish farming unit “Jostein Albert”, and to the Pempa’q In-stream Tidal Energy Project in Canada.
Technology supplier to the offshore industry
Although sustainable technology solutions will be the main focus of the “new” Scana, more traditional products and services to the oil and gas industry will still be an important part of the business. PSW’s position in the offshore industry is strong, especially in electrical, automation and well control. PSW currently supplies technology products within power systems and well control and has in recent years also positioned itself well with own products within subsea electrification and well plugging.
“There will be oil and gas activity on the Norwegian and international continental shelf for many years to come and the company is uniquely positioned to take a leading green shift role also in the oil and gas industry. As a leading supplier, we will therefore continue to serve the offshore industry with innovative solutions, systems, and services. At the same time, we will use the unique expertise built around oil service into new renewable segments, such as offshore wind,” Bekkenes states.
Scana’s merger with PSW will take place in January 2022. Scana is currently set up with headquarters right next to Bergen Airport but will move its employees to PSW’s offices in Bergen in 2022. PSW also has modern and future-oriented production facilities, self-sufficient in electricity from solar cells, both at Mongstad in Alver municipality and at Ågotnes in Øygarden municipality.
For further information, please see our published stock exchange announcement or contact:
CEO, Scana ASA
T: +47 404 03 520
CEO, PSW Group
T: 911 71 914