Tenö varv

Tenö varv is a maintenance yard with a long history that is situated just south of Vaxholm. The maintenance yard’s main commissions include the service and repair of ships, specialist competence for the installation and renovation of marine engines, driving ropes and thrusters, steel and aluminium structures, blasting and painting, electrical and control equipment and rapid field service.

After 50 years, Tenö varv has a strong position as one of the most important market players in the Stockholm region and a reputation for carrying out work of high quality at reasonable prices. Tenö varv’s original purpose was providing shipyard services to Färjerederiet’s ships, but during recent years the company has also worked actively to provide high quality services to a wider customer base. The prime location alongside the shipping lane in Vaxholm has contributed to Tenö varv continually succeeding in increasing its share of external companies without reducing its commitment to Färjerederiet. Färjerederiet now accounts for 62 % of the maintenance yard’s total turnover and provides a stable base for turnover now and in the future. Färjerederiet, Sweden’s largest shipping company, transports 21 million passengers and 11 million vehicles annually on its 63 yellow ferries. By order of the Swedish Transport Authority, the company serves 37 routes in the public highway network.

The maintenance yard also has good relations with Vaxholm Municipality, which is extremely protective of the favourable waterfront location of this business and there is potential to further develop and expand the business. Tenö varv has been experiencing stable growth ever since 2006 and has retained an operating margin of between 7 and 9 %.

The sale of Tenö varv includes the shipyard business, personnel and equipment. A more detailed description of Tenö varv (including a list of the assets included in the sale) is given in the invitation to tender.

Background to the sale

On 17 February the Swedish Transport Administration’s board of directors made the decision to back the director-general’s proposal to sell one or both of Färjerederiet’s maintenance yards at a time suitable for the market. As a result of this, investigations have been made into the shipyard market and possibilities for a possible sale have been identified. The Swedish Transport Administrator’s director-general has made the decision to make the sale of Fridhems varv public and thereby initiate the sales process.

The objective of the sale is to provide the maintenance yard with better opportunities to expand/develop the business and to follow state policy with the maintenance yard filling the state’s criteria for conversion into a company:

• That there are functioning private markets for shipyard services
• That it provides clearer conditions for the market
• That the risks of oligopoly/monopoly on the private market can be restricted through, for example, long contracts or procurement within the state etc.

The sales process

The first stage in the sale of Färjerederiet’s maintenance yards is an application of interest. The objective of the application of interest is to determine, with a limited effort, whether it is worth proceeding to the next stage of the process, which requires significantly more effort from both parties. Following that, those parties that share a common interest with the Swedish Transport Administration are selected and provided with the opportunity to submit a tender and visit the maintenance yard. Negotiations are then initiated with a small number of parties that have submitted the most favourable tenders. When a contract of sale has been signed, the business is then transferred between the parties. 

Application of interest  October 2011
by 25 October

Tender by   November 2011
by  30 November
Visit to maintenance
yard (see website for
date)

Negotiation/  February 2012
Due Diligence

Transfer   March 2012

Maintenance yard  April 2012 and onwards
under new ownership
Figure 2. Process description: sales of Fridhems varv

TENÖ VARV
59° 23.3’ N 18° 19.6’ E

Tenö varv in brief

Location:   Vaxholm
Position:   59° 23.3’ N 18° 19.6’ E
Slipway (length x width):  600 tons (60.0m x 11.7m)
Mobile crane:  20 tons
Equipment quay:  4.5 draught
Number of employees:  22
Specialist competence:  Thrusters
Main customers: Färjerederiet, the Swedish Coast Guard, Strömma Turism & Sjöfart AB, the Swedish Armed Forces etc.
Turnover 2010: 37 600KSEK
After-tax profits 2011: 2 000KSEK

TENÖ VARV
- A STRONG PARTNER

FÄRJEREDERIET
The Swedish Transport Administration

The Swedish Transport Administration Färjerederiet, Box 51, 18521 Vaxholm,
Visiting address: Norrhamnsgatan 3. Telephone: 08-544 415 00. Fax: 08-544 415 10
www.trafikverket.se