Svanehøj acquires US-based LNG specialist
With its third company acquisition in just over two years, marine pump specialist Svanehøj continues to expand its service solution business. This time by taking over California-based Complete Cryogenic Services, a specialist in service and overhaul of submerged pumps on LNG tankers.
The number of LNG tankers globally has grown by around 40% in the last five years, and 2022 was a record year with more than 200 new contracts signed. With this, an attractive service and aftersales market emerges, in which Svanehøj is determined to gain market share.
Therefore, the Danish marine pump and gas tank equipment specialist has acquired Complete Cryogenic Services (CCS) in Tustin, California, with more than 30 years of experience in the service and overhaul of submerged cargo, spray, and high-pressure pumps for cargo containment systems on LNG tankers.
- CCS is a well-known and recognized company that will strengthen our efforts to become the leading service provider of inspections, service, and calibration of cargo equipment in the LNG segment. At the same time, the acquisition is an investment in knowledge and know-how that will help us develop new products and services for the energy transition of shipping, says Søren Kringelholt Nielsen, CEO of Svanehøj.
Local service engineers worldwide
In recent years, Svanehøj has invested significantly in its service solution business through acquisitions of FORCE Technology Marine Equipment Service (2020) and Wärtsilä Tank Control Systems (2022), as well as the establishment of a 1,600 sqm service and repair shop in Singapore (2021). With the acquisition of CCS, Svanehøj Service Solutions is now located on three continents with just under 100 employees, almost a tenfold increase in four years.
- We have invested significantly in our service business to be close to customers with local service engineers worldwide. Today, Svanehøj can offer integrated solutions with service on safety valves, gauging and instrumentation systems, and submersible cargo, spray, and high-pressure pumps – all carried out by one service provider to make the entire service scope easier and more financially viable, says director of service and aftersales at Svanehøj, Morten Christian Larsen.
With the acquisition of CCS, Svanehøj will also be able to re-engineer critical spare parts for all pump types. Morten Christian Larsen points out that it is essential to Svanehøj's strategy of supplying high-quality spare parts for other brands' equipment.
Ensuring a future succession
CCS becomes an independent part of Svanehøj Service Solutions and will be named "Svanehøj CCS - Complete Cryogenic Services". The company's nine employees will continue to work in their current roles with Henry Smith IV as director. He sees obvious synergies in bringing decades of experience with submerged LNG pumps into Svanehøj's growing service business.
- For us, the change of ownership is an opportunity to ensure a future succession and scale our business globally. We have come to know Svanehøj as a company with solid values and a clear vision to help overcome the barriers in the energy transition of shipping. We look forward to being a part of that, says Henry Smith IV.
Following the acquisition of CCS, Svanehøj employs 320 people and has activities in Denmark, the UK, France, Singapore, China, Japan, and the USA.