Dubai: Depa Limited, an interior contracting services company, has acquired Vedder, a luxury yacht interior design and fit-out specialist based in Germany.
This acquisition is in line with Depa's diversification and horizontal expansion strategy of acquiring strong niche players in its core business lines in target markets.
Founded over 100 years ago in northwest Germany, Vedder designs and builds customised interiors of large luxury yachts for an exclusive international client-base.
The acquisition strengthens Depa's growing presence in the yacht fit-out market with its subsidiary Pino Meroni, a Dubai-based yacht fit-out specialist. This acquisition will unlock significant synergies for the Depa group by leveraging Vedder's German project management expertise and European market positioning, and Pino Meroni's competitive cutting-edge manufacturing facilities, Depa said in a statement. Following this acquisition, Depa will become one of the largest and leading yacht interior specialists in the world.
"We welcome Vedder to the Depa family, where it will continue to build on its market leadership, unique heritage, and exceptional brand in the marine world," said Mohannad Sweid, CEO of Depa. "This acquisition is very much in line with our strategy of acquiring specialist, market leading companies in areas of interior contracting and procurement," he added.
The international luxury yachting sector is experiencing significant growth, and Germany, which is Vedder's primary market, is the fourth largest market globally in terms of luxury yachts under construction this year.
The 2008 Global Order Book, an annual report on the international yacht industry, estimates that approximately 916 new yachts measuring 80 feet or longer were under construction or were scheduled for construction at shipyards throughout the world back in September 2007. This represents a 17.9 per cent increase on the year before.
The Global Build Report estimated that luxury yachts under construction in 2007 were worth a total of Dh67.58 billion ($18.4 billion).