Babcock & Wilcox Enterprises, Inc. [NYSE: BW] disclosed that it has inked an acquisition agreement to purchase VODA A/S which is a top multi-brand aftermarket parts and service provider for the waste-to-energy and biomass-to-energy markets have its headquarter in Vejen, Denmark. This acquisition will establish the basis for future growth and new possibilities for clients and workers of VODA.
VODA has leveraged a flexible and scalable business model to expand quickly and competently. BW is seeing many additional opportunities for its combined operations to expand synergistically. This strategic acquisition combines the strengths of B&W and VODA and establishes a strong base to further grow its service business in Europe’s fast-increasing renewable energy market.
Furthermore, BW believes that integrating the financial strength of BW, engineering expertise and successful experience as an original equipment offeror and service firm with the knowledge and expertise of VODA creates a dynamic team ready to collaborate to serve its clients. Moreover, the firm disclosed that the acquisition deal will be completed at the end of October 2021.
Strategic Benefits of Acquisition
In addition, there are many strategic benefits for BW and VODA. B&W will create B&W Renewable Service to combine the VODA A/S and B&W Vølund aftermarket services businesses. This will operate as B&W’s platform for its renewable service business in Europe. It will substantially bolster and increase its ability to serve current and new customers throughout this market, including for B&W-supplied and competitors’ technology.