SAF-HOLLAND: Acquisition of leading commercial vehicle suspensions system supplier in China
SAF-HOLLAND: Acquisition of leading commercial vehicle suspensions system
supplier in China
* Business Unit Powered Vehicle Systems strengthens footprint in China
* Synergies from combination of markets, products and technologies
* Acquisition rounds existing portfolio of SAF-HOLLAND
Luxembourg, September 10, 2013 - SAF-HOLLAND, the globally active supplier
to the truck and trailer industry and Corpco Beijing Technology and
Development Co., Ltd. ('Corpco') today have entered into a definitive share
purchase agreement for SAF-HOLLAND to acquire 80 percent equity of Corpco
Beijing Technology and Development Co, Ltd. In a first step a joint venture
will be formed with a pull option regarding the remaining 20 percent of
shares.
With revenues of around 18 million Euros in 2012 and 180 employees Corpco
is a leading producer of commercial vehicle suspensions systems in China.
Its products are proven and suitable for global markets. The acquisition
will expand the presence of SAF-HOLLAND's Business Unit Powered Vehicles
Systems into the Emerging Markets, especially in China. Both companies
will combine their resources to provide continuous product improvements and
new technologies across the commercial vehicle range in China and certain
export markets.
' We are pleased that we have gained with Corpco a strong partner which
will help us to further explore the growing market for truck and bus
suspensions in China. The combination of the organizations is a perfect
move as both, SAF-HOLLAND and Corpco, are major suppliers of suspension
systems with strong brands in their respective markets', said Detlef
Borghardt, CEO of SAF-HOLLAND.
Synergy potentials are expected from the global sales network of
SAF-HOLLAND, its good regional footprint in North America and Corpco's
excellent market position in China. The combination of technologies and
Corpco's strong brand with SAF-HOLLAND's well established Neway brand
brings additional benefit. The Neway brand for suspensions stands for
tough, durable and reliable products with a long and proven history whereas
the Corpco brand is known for speed to market and a broad portfolio
resulting in increased export opportunities. Additional benefits are
expected from the combination of the dense Aftermarket network of Corpco
and SAF-HOLLAND. With the acquisition SAF-HOLLAND becomes less dependent
from the economic cycles in the truck and trailer industry in Europe and
North America.
Corpco Beijing is a leading Chinese company engaged in the production and
sale of suspensions for the coach and bus markets in China and is one of
the market leaders for state-of-the-art suspension systems. The company was
founded in 1992, and through corporations with Neway, acquired by Holland
in 1999, starting in the late 1990's began selling and distributing
SAF-HOLLAND's Neway branded suspensions for the developing coach and bus
suspension market in China. The company expanded its product range through
internally developed products and started a manufacturing operation in
Baotou, Inner Mongolia. Corpco has a well-established Aftermarket network
that includes over 70 service stations, 43 spare parts warehouses and four
parts distribution centers.
'We are delighted to deepen our partnership with SAF-HOLLAND. Since 1997 we
have a long successful relationship and the bundling of our forces in a
joint venture is a logical development to even increase our market power
with the very well-positioned brands Neway and Corpco in the future', noted
Tom Yu, CEO of Corpco Beijing Technology and Development Co., Ltd.
SAF-HOLLAND, a global leader in the manufacturing of coupling products,
axle and suspension systems and components for the commercial vehicle
market can be traced back for over a century. The Business Unit Powered
Vehicle Systems produces especially suspension systems for trucks and buses
and fifth wheels for trucks. With the joint venture SAF-HOLLAND rounds its
existing product portfolio. The acquisition is financed by the proceeds
from the capital increase in December 2012 and from the bond which was
issued in October 2012.
The transaction is subject to regulatory review and approval and customary
closing conditions. The closing of the transaction is expected in the
fourth quarter of calendar year 2013.
Company Profile:
With turnover of approximately EUR 860 million in 2012 and more than 3,000
employees, SAF-HOLLAND S.A. is one of the world's leading manufacturers and
suppliers of premium product systems and components primarily for trailers
as well as trucks, buses and recreational vehicles. The product range
encompasses axle and suspension systems for trailers, coupling devices,
kingpins and landing legs. SAF-HOLLAND sells its products on six continents
to Original Equipment Manufacturers (OEMs) in the replacement parts market
and, in the aftermarket business, to the OEM's Original Equipment Suppliers
(OESs), as well as by means of a global service and distribution network.
Through this network, SAF-HOLLAND re-sells its products to end users and
service centers. SAF-HOLLAND has thus established itself as one of the few
manufacturers in its sector that is internationally positioned with an
extensive product range and a broad service network. SAF-HOLLAND S.A. is
listed in the Prime Standard of the Frankfurt Stock Exchange and is among
the stocks in the SDAX (ISIN: LU0307018795).
Contact:
SAF-HOLLAND GmbH
Claudia Hoellen
Hauptstraße 26
63856 Bessenbach
Phone +49 6095 301-617
claudia.hoellensafholland.de
End of Corporate News