Lévis, QC – Davie today announced it has finalized the acquisition of the assets of Finland’s Helsinki Shipyard Oy (HSO).
The historic transaction combines the skills, experience and capabilities of two leaders in Arctic shipbuilding and other high-value products. While the Canadian and Finnish shipyard will be separate legal and operating entities, the business headquarters will remain in Québec. The transaction will create opportunities for employees, encourage collaboration, facilitate the transfer of know-how, provide access to resources, and stimulate export potential.
While the details of the business purchase agreement are confidential, the transaction was made possible by a combination of Davie’s own funds and by €77 million ($110 million) of financing from the Québec government consisting of an equity investment of €30 million ($43 million) and a loan of €47 million ($67 million). A significant proportion of the funds will go to ensuring the shipyard has working capital while it gets up and running and secures new business.
Importantly, the Canadian government has looked favorably on the potential synergies resulting from the transaction for the construction of icebreakers under the National Shipbuilding Strategy.
Together, Davie and Helsinki Shipyard will deliver critical expertise for government and commercial customers. Both shipbuilders, renowned for their leadership and expert knowledge in clean energy solutions, will contribute to the creation of a greener and more sustainable ocean-going fleet.
The completion of the transaction is the culmination of a series of milestones, beginning in December 2022. In March 2023, Davie exercised an exclusive option to purchase the assets of HSO. This was followed in April by the signing of a business purchase agreement, and on July 4 Davie secured a new 50-year land lease from the City of Helsinki.
Commented James Davies, Davie President and CEO, and Co-owner: “We are delighted to bring two historic and highly complementary businesses together. It would not have been possible without the support of Québec, the City of Helsinki, Finland and Canada. We are confident our talented people and world-class supply chain will quickly form the preeminent global centre of excellence for green Arctic shipbuilding, and other specialized products. Empowered by Helsinki shipyard’s unique know-how, Québec can also more efficiently deliver Canada’s polar icebreaker order book, which is the western world’s largest.”
Kim Salmi, Managing Director, Helsinki shipyard, declared: “This is the best possible news for Helsinki shipyard, our talented workforce and our supply chain. After months of planning, our top priority is to rapidly return this business to what it does best – designing and building world-class ships quickly, efficiently and cost effectively.”
(Photo from Davie)
