Andritz AG has completed its acquisition of hydroelectric equipment supplier VA Tech Hydro from Siemens Austria.
Following approval by antitrust authorities, the parties closed the transaction, in which Andritz, an Austrian manufacturing equipment maker, said it paid Siemens between 180 million and 190 million euros (US$218 million and US$230 million).
VA Tech Hydro will be included in the consolidated financial statements of the Andritz Group as of July 1, Andritz said June 1.
“The Andritz Group looks back on many years of internationally recognized experience in water turbine design and construction,” Andritz Chief Executive Officer Wolfgang Leitner said. “The purchase of VA Tech Hydro allows us to extend our product portfolio in this field substantially and to rise from a niche player status to that of a globally leading supplier of water turbines with a global presence.”
Andritz Group is a leader in advanced production systems for pulp and paper, steel, and other specialized industries. It has 6,000 employees and 30 production sites in Austria, Germany, Finland, Denmark, France, Netherlands, Canada, China, and the United States.
European Union competition authorities ordered Siemens to sell VA Tech Hydro as a condition for approval of Siemens’ purchase of Austria’s VA Tech in 2005. Siemens chose Andritz’s bid over competitors Cross Industries of Austria and Impsa of Argentina.