Kongsberg Maritime to Acquire Swedish Propulsion Firm Berg Propulsion

Oslo-listed Kongsberg Maritime has agreed to acquire Swedish maritime propulsion company Berg Propulsion, bringing together two complementary businesses across the propulsion market. Berg Propulsion will operate as a separate brand and standalone unit within Kongsberg Maritime's Propulsion and Handling division following completion. The combined portfolio will span controllable-pitch propellers, hybrid and electric propulsion, and integrated vessel control systems, with the deal positioned as central to Kongsberg Maritime's growth plan and its ambitions in the propulsion aftermarket.

 

Details of the Acquisition

 

Kongsberg Maritime has reached an agreement to acquire Berg Propulsion. Berg is a leading Swedish maritime propulsion company with an established market presence. Financial details of the transaction were not disclosed by the parties. However, the acquisition is priced at approximately the same EV/EBITDA level as Kongsberg Maritime's current valuation. The transaction remains subject to certain conditions, including customary regulatory approvals.

The deal is framed as a key element of Kongsberg Maritime's strategy. Company leadership described the acquisition as central to its growth plan. It is intended to strengthen the company's ability to serve a broader range of customers and vessel segments. Berg Propulsion is seen as complementing the existing portfolio in an attractive way. Together the businesses aim to deliver greater value through a wider offering and stronger lifecycle support.

 

Complementary Market Positions

 

The two companies occupy distinct but complementary positions in the market. Kongsberg Maritime holds a strong position in high-value, performance-driven segments. Berg Propulsion, by contrast, has built a leading presence in volume segments. These include general cargo and product tankers within merchant shipping. This division of strengths reduces overlap between the two businesses.

The combination is designed to let each company build on the other's strengths. A key objective is to use these complementary positions to generate further growth. Kongsberg Maritime's presence in premium segments pairs with Berg's reach in volume markets. This broadens the combined company's addressable market considerably. The pairing is intended to open opportunities that neither could pursue as effectively alone.

 

The Combined Portfolio

 

The merger creates a broad and comprehensive propulsion offering. The combined portfolio will cover a full spectrum of propulsion technologies. This includes controllable-pitch propellers and thrusters across vessel types. It also spans hybrid and electric propulsion systems for lower-emission operation. Integrated vessel control solutions complete the expanded technology range.

The scale of the two businesses underlines the significance of the deal. In 2025, Berg Propulsion generated revenues of approximately 183 million dollars. Kongsberg Maritime, as part of the Kongsberg Group, generated revenues of around 2,776 million dollars. This represented 10 percent growth compared with the previous year. The combination therefore joins a substantial parent business with a sizeable specialist acquisition.

 

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Aftermarket and Cross-Selling Potential

 

A central rationale for the deal lies in the aftermarket opportunity. Company leadership said the transaction will unlock significant potential in the aftermarket. Berg Propulsion's large installed base can be supported through Kongsberg Maritime's global service network. Future deliveries would also benefit from this expanded lifecycle support capability. This is expected to strengthen the company's ability to service propulsion units such as thrusters worldwide.

The combination also creates opportunities for cross-selling between the businesses. Kongsberg Maritime sees potential to sell its energy and control products into Berg's core segments. Berg's propeller systems could in turn be offered into naval markets where Kongsberg is strong. This two-way flow of products broadens the reach of both portfolios. Such cross-selling is intended to extend each brand into new customer areas.

 

Berg's Continuing Commercial Activity

 

Berg Propulsion has continued to win new business alongside the acquisition. On 10 July, it secured a contract to provide propulsion packages for six multipurpose dry cargo vessels. These 7,000-deadweight-tonne vessels are being built by Jiangsu Dajin Heavy Industry in China. They were designed by Dutch firm Groot Ship Design for UK operator Carisbrooke Shipping. Delivery is scheduled between the third quarter of 2027 and the first quarter of 2029.

The contract reflects Berg's established presence in the Chinese shipbuilding market. Each vessel will feature Berg's MPP950 main propulsion system with associated control and optimisation software. The order builds on an existing relationship with the same shipbuilder. Berg has supplied systems for more than 100 Jiangsu Dajin-built ships since mid-2021. This track record spans a wide range of vessel types, from tankers to offshore vessels and tugboats.