The transaction will strengthen Elcoline’s position as a provider of technical services to industry and expand its offering of critical infrastructure maintenance and repair services. The acquisition is in line with Elcoline’s growth strategy and will create new opportunities for customers and employees.

On 1 November 2024, Elcoline Group Oy has signed an agreement to acquire Fortum Group’s Turbine and Generator Services (TGS) business. With the acquisition, Elcoline will strengthen its position in the maintenance and repair of critical infrastructure in the energy industry, employing a total of nearly 1,000 professionals in Finland, Sweden and Germany.

TGS is a highly respected Nordic provider of maintenance and repair services for power plants and industrial customers, focusing on turbine and generator maintenance and equipment condition monitoring, and related control and protection system upgrades. Employing over 170 people in Finland, Sweden and Germany, the company had a turnover of EUR 32 million in 2023.

“This acquisition will accelerate Elcoline’s ambitious growth strategy and is an important step towards our EUR 250 million revenue target. In the coming year, our revenue is expected to reach almost EUR 150 million. The transaction will internationalise and expand our operations in important sectors such as energy and other industrial power producers. By joining forces with TGS, we will be able to offer our customers more specialised expertise and strengthen our position as a Nordic provider of technical services to industry,” says Elina Engman, the CEO of Elcoline Group.

TGS brings to Elcoline long-standing customer relationships, strong industry experience and technical expertise that complements the company’s existing know-how and service offerings. TGS’s customers will have access to Elcoline’s extensive range of services that cover demanding installation and maintenance services. In addition to power plants, these services will also be available to other industrial operators in the same industrial area. For Elcoline’s customers, the range of services will be extended to the maintenance and servicing of turbines and generators, ensuring more comprehensive solutions to support customers’ operational reliability and efficiency.

TGS’s activities also provide excellent support for Elcoline’s objectives in promoting the green transition and sustainable development. TGS services maintain critical infrastructure, extend the lifetime of power plants and ensure reliability – enabling us to be the best partner for our customers throughout their life cycle.

“We are very pleased that our employees will be part of a strong and growing player whose core business is maintenance and repair services. Our employees will have a new home where their skills and work will be at the core of what we do, and together we can develop more specialised services for our customers. Elcoline’s ownership base includes well-known Finnish investors Evli, Elo, Tesi and Arvo Sijoitusosuuskunta, as well as the company’s founders and personnel, providing a solid basis for joint growth,” says Lars-Hugo Andersson, Vice President, Fortum TGS.

The parties have agreed not to disclose the consideration amount. The transaction is subject to customary closing conditions and is expected to be completed in the fourth quarter of 2024.

For more information:

Elina Engman, CEO, Elcoline Group Oy

+358 50 351 4673, elina.engman@elcoline.fi

Lars-Hugo Andersson, Vice President, Fortum TGS

+46 72 217 15 79, lars-hugo.andersson@fortum.com

Elcoline Group Oy

Elcoline is a Nordic growth company specialising in industrial technical services for international industrial companies. Elcoline carries out demanding installation and maintenance projects for both new and existing sites in various industrial sectors. By providing high-quality and safe services, we ensure our customers’ security of production and competitiveness.

Elcoline’s services include total and partial maintenance outsourcing, maintenance service contracts and demanding installation projects. The company’s wide range of services covers mechanical installations, electrical, automation and instrumentation work, piping installation and welding, as well as machine shop fabrication of parts for the energy industry. Elcoline’s customers are active in the metal, mining, maritime, energy, defence, process and industrial modular construction industries.

Elcoline was founded in 2002 and employs around 800 professionals. The company’s estimated turnover in 2024 is around EUR 100 million. Elcoline operates in Finland and Sweden, as well as in service contract locations around the globe. Elcoline is owned by Evli, Elo Mutual Pension Insurance Company, Tesi Finnish Industrial Investment Company, Arvo Sijoitusosuuskunta and the company’s founders and staff. Our goal is to grow profitably and to be the most valued partner for our customers and the most desirable employer for our employees.

For more information, please visit www.elcoline.fi and www.elcoline.se.

TGS Finland Oy

Turbine and Generator Services (TGS) business is a well-established Independent Service Provider (ISP) for turbine upgrades and overhauls, generator stator and rotor rewinding and replacements as well as related control and protection system modernisations for power plants. TGS has over 30 years of experience from the industry and offers tailor-made, and both technically and economically optimised, services for its customers.

TGS business is established in three countries, Finland, Sweden and Germany, and approximately 170 employees are serving customers around the Nordic countries and Central Europe. Workshops located in Naantali, Finland, and Västerås, Sweden, can serve customers with turbine and generator repairs and refurbishments.