Wärtsilä has reached an agreement to acquire Puregas Solutions, the Sweden based provider of turnkey biogas upgrading solutions.
Puregas is a leading player in its field with subsidiary companies in Germany, Denmark, the UK, and the USA. The company utilises a unique CApure process to convert raw biogas to biomethane and renewable natural gas. The transaction is valued (enterprise value) at SEK 280m (EUR 29m) with an additional maximum sum of SEK 70m (EUR 7.3m) to be paid based on the performance of the business in the coming year.
Biogas Upgrading
The acquisition will provide Wärtsilä with added equipment and expertise in biogas upgrading, and will complement the company's existing position in the biogas liquefaction market. In the larger context, Puregas Solutions' offering is in close alignment with Wärtsilä's own gas based technologies, and the merging of the two companies will expand Wärtsilä's overall reach in the gas value chain.
Renewable Natural Gas Market
The renewable natural gas market is closely aligned to Wärtsilä's core business in gas solutions, and is expected to achieve solid growth going forward. In 2016, Puregas Solutions' turnover was SEK 200m (EUR 21m) and the profitability level was good. The company currently has about 40 employees.
Picture: Wärtsilä headquarters in Helsinki, Finland (by Wärtsilä).
