Cavotec to focus on growing markets for sustainability solutions in Ports & Maritime and Industry – Initiates process to divest the Airports business
Cavotec will focus resources and make investments to further develop its leading position within electrification and automation for improved sustainability in its fast-growing ports & maritime and specialized industrial applications markets and, as a consequence, will divest its Airports business.
As the market trends and regulatory requirements are expected to drive significant growth in demand for shore power, automated mooring and port and industry electrification, Cavotec has decided to focus resources and investments in these areas to further strengthen its position and accelerate its growth. Cavotec has subsequently taken a decision to initiate a process to divest its Airports business.
Currently, Airports accounts for approximately 25 per cent of Cavotec’s revenue with about 240 employees. Cavotec estimates that a sale of the Airports business can be completed during 2021. In future Cavotec will report Airports separately, commencing with the interim report for the first quarter of 2021. This report will now be published on Wednesday May 12, 2021.
“We are now optimizing and streamlining our portfolio to enable us to focus on the fast-growing ports & maritime market for profitable sustainability solutions as well as leveraging on the technology synergies with our Industry business, such as connectivity and high power and high speed electrical charging”, says Mikael Norin, CEO of Cavotec.
“Our Airports business is a fine business, and we have a strong position in offering flexible gate solutions to airports. However, as the Airports business in many ways is quite different to Cavotec’s core and with few technology synergies, we believe the business would be better suited to develop and grow under the leadership of a company that has a broader position in the aviation industry”, Norin adds.
The decision is the result of a strategic assessment with a thorough market analysis of the electrification and efficiency trends in the ports & maritime market as well as the segments Cavotec operates in for industrial equipment. With an expected accelerated adoption of electrification and automation solutions at thousands of ports around the world and for millions of pieces of industry assets, Cavotec has an opportunity to strengthen its market leading position by focusing on its core products such as shore power, automated mooring (MoorMaster), reels, electrical charging of commercial vehicles as well as its wide service portfolio to support its customers.
“Through this strategic change, we will advance our position to enable a future world that is cleaner, safer and more efficient through our profitable sustainability solutions for ports & maritime and industry applications”, Norin adds. “We will during the coming months make further announcements on investments in products, technology and capabilities as part of the implementation of our new focused strategy”, Norin concludes.
Cavotec will hold a conference call today 5 March 2021 at 12:00 CET to answer questions with regards to today´s announcement. Mikael Norin, CEO, and Glenn Withers, CFO will participate in the call. For call-in details, please see below.