The family controlling A.P. Moller-Maersk A/S agreed to buy a Swedish maker of engine products for about 8.59 billion kronor ($840 million), spending some of the windfall profits it made during the container rate boom.

A.P. Moller Holding A/S is offering 230 Swedish kronor per Concentric AB share, in a bid recommended by the takeover target’s board, according to a statement on Thursday. The offer represents a 62% premium to Wednesday’s closing price.

Concentric shares rose as much as 59% to 227 kronor as of 9:14 a.m. in Stockholm.

A.P. Moller owns about 42% of the shares in transport giant Maersk, which has made record profits in recent years as global trade disruptions, most recently in the Red Sea, have boosted freight rates. Concentric shares have lost about half their value since a January 2022 peak and A.P. Moller Holding said in Thursday’s statement it has followed the Swedish company for years.

Concentric will “will require significant investments and considerable endurance” as it faces new competition and requires new products in the market for electric transportation, where it’s set “to assume a leading role,” A.P. Moller said in the statement.

Sweden’s Forsta AP-fonden and Cliens Kapitalforvaltning AB, which together control 16.7% of outstanding shares, entered into undertakings to accept the offer.

A.P. Moller appointed Citigroup Global Markets Europe AG and Danske Bank A/S as financial advisers for the offer.