Stamford, Conn.–(BUSINESS WIRE)–Nov. 1, 2023– ITT Inc. (NYSE: ITT) has officially agreed to acquire Svanehøj Group A/S (Svanehøj), a privately held company, for an approximate sum of $395 million1. The completion of this transaction is anticipated in the first quarter of 2024, pending the customary regulatory approvals. Following the acquisition, Svanehøj will integrate into ITT’s Industrial Process (IP) segment, renowned globally for its focus on highly engineered pumps, valves, and aftermarket services.
Integration into ITT’s Industrial Process Segment
Svanehøj, headquartered in Svenstrup, Denmark, is a prominent supplier of pumps and associated aftermarket services, particularly excelling in cryogenic applications within the marine sector. The company’s product range includes deep-well gas cargo pumps, fuel and energy pumps, and tank control systems. These offerings are pivotal in managing critical liquids essential for the energy transition, encompassing ammonia, liquefied petroleum gas (LPG), liquefied natural gas (LNG), methanol, hydrogen, and CO2. Svanehøj’s products are widely recognized for their superior quality and are considered leaders across various industries. Additionally, the company boasts a robust global aftermarket business, catering to its extensive installed base and providing services for third-party equipment.
CEO Luca Savi’s Enthusiasm about the Acquisition
Luca Savi, CEO and President of ITT expressed enthusiasm about the acquisition, stating, “Svanehøj is an outstanding addition to ITT, bringing extensive experience in the marine pumps industry and a complementary portfolio of highly engineered flow products aligned with the energy transition. The company’s leadership positions in adjacent markets, strong installed base, and above-market growth record make it a valuable asset. Svanehøj’s aftermarket offering, backed by a global service network and data-driven approach, aligns well with ITT’s vision. We welcome Svanehøj’s CEO, Søren, and the entire team to ITT.”
Svanehøj is strategically positioned to capitalize on opportunities arising from decarbonization, the energy transition, and regulations for emissions reduction in marine vessels. The International Maritime Organization’s “IMO 2023” GHG Strategy, calling for a 50% greenhouse gas reduction by 2050, further supports Svanehøj’s potential for growth.
The impending industry shift toward eco-friendly energy sources and regulatory compliance, coupled with an aging vessel fleet, is expected to drive a 5% compound annual growth rate (CAGR) in new marine vessel builds from 2023 to 2025. Moreover, LNG-fueled vessels and LNG carriers are projected to experience growth exceeding 15% through 2027.
Svanehøj CEO Søren Kringelholt Nielsen expressed optimism about the acquisition, stating, “This is excellent news for Svanehøj and our employees. We are proud to become a part of the ITT family, seeing ITT as an ideal match and the perfect platform to accelerate the growth and development of Svanehøj’s market-leading pump solutions. We look forward to embarking on the next chapter as part of ITT and contributing to the green transition.”
Established in 1928, Svanehøj employs around 400 highly skilled professionals and operates in Denmark, Singapore, and France. Approximately half of its annual sales are to customers in Europe, Asia Pacific, the Americas, and the rest of the world. In 2022, the company achieved sales of approximately $140 million.