Canada's Davie acquires Russian-owned Helsinki Shipyard

Canadian firm Davie Shipbuilding on Friday announced the completion of its acquisition of the assets of Finland’s Helsinki Shipyard Oy (HSO) from Russian-owned Algador Holdings after securing regulatory approval

Helsinki Shipyard is engaged in designing and building high-class passenger and cruise vessels, including superyachts. The shipmaker is better known for its icebreakers and other ice breaking ships for arctic conditions.

Davie, Canada’s largest shipbuilder, said the transaction will result in a new entity that combines the skills, experience and capabilities of two leaders in Arctic shipbuilding and other high-value products

Davie said the combined entity will create opportunities for employees, besides expanding the company’s production potential through transfer of know-how and access to resources.

While the Canadian and Finnish shipyards will remain separate entities, Québec will be the business headquarters for the two companies. 

Davie said it used a combination of own funds and a €77 million ($110 million) financing from the Québec government for completing the transaction. The government funding comes as €30 million ($43 million) of equity investment of and a €47 million ($67 million) loan.

The funds will mainly be used for ensuring adequate working capital is available for the shipyard while it secures new business.

The acquisition is the culmination of a series of transactions beginning in December 2022. In March 2023, Davie exercised an exclusive option to purchase the assets of HSO. This was followed by the signing of a business purchase agreement in April, and a new 50-year land lease agreement with the City of Helsinki, on 4 July.

James Davies, Davie President and CEO, and Co-owner thanked the Québec government, the City of Helsinki as well as Finland and Canada for making the transaction possible. He said the businesses together will create a world-class supply chain and a preeminent global centre of excellence for green Arctic shipbuilding.

Alex Vicefield, Inocea chairman and CEO, and co-owner, said the combination of the two global leaders in ice-class vessel and icebreaker construction is strategically important and critical for future security, trade and navigation in the western world.

Jean-Yves Duclos, Canada minister of public services and procurement, said the acquisition will boost the efficiency of icebreaker and ferry construction and bring a clear advantage in terms of supply chain cost management through increased purchasing power, while maximising the long-term economic impact for Canada and Québec City region. 

Juhana Vartiainen, Mayor of Helsinki said the transaction will help improve the operational capabilities of Helsinki Shipyard and enhance the well-being of its workforce and all Helsinki residents.

Davie is part of the Inocea Group, a privately owned international marine industrial group.