SAF-HOLLAND acquires the Trailer Tire Pressure Management Specialist, PressureGuard(TM)

SAF-HOLLAND acquires the Trailer Tire Pressure Management Specialist, PressureGuard(TM)

Luxembourg, January 21, 2019 - The commercial vehicle supplier SAF-HOLLAND has acquired a majority stake in the automatic tire pressure management specialist, PressureGuard LLC, based in Nashville, Tennessee. This acquisition strengthens SAF-HOLLAND's product portfolio for tire pressure systems in North America and adds a key foundational element in advanced digital SMART products for trailer applications. In the medium-term, SAF-HOLLAND plans to also offer this system in Europe, China and other sales markets.

SAF-HOLLAND has acquired a 51% stake in the manufacturer of tire pressure management systems, PressureGuard, effective January 9, 2019. A purchase option for the remaining outstanding shares in the company was agreed between SAF-HOLLAND and the previous owner, Servitech Industries, Inc. This option may be exercised at a later date. The purchase price for the acquired stake is in the low single-digit million euro range. PressureGuard's management team will remain with the company in their current roles to support the company's ongoing production, as well as its integration into the SAF-HOLLAND Group.

The PressureGuard tire management system has proven to be a durable and robust solution to meet the growing market demand for reliable automatic tire inflation. This system includes several unique key features such as stainless-steel braided hoses, specialized die cast aluminum hubcaps with protective fins, a patent pending unique axle vent assembly and patented high-pressure relief capabilities. The non-pressurized axle design can accommodate all industry standard variations in axle configurations, tire sizes, rim types, axle spindle types, hub lubrication options, pressure settings, power and electrical harness options.

SAF-HOLLAND sees great potential in PressureGuard's proven tire pressure management technology to provide an even more comprehensive axle and suspension solution to its fleet customers in North America. By employing proprietary solutions, the Group is not only expanding its systems expertise but also increasing its added value. This one-stop sourcing approach provides fleet managers with a single point of contact and ensures a fully engineered system design that addresses any compatibility issues up front. This approach also simplifies the warranty and after-sale support needed by today's fleets.

"This acquisition is in line with our strategy of providing complete solutions to our customers and complements our product portfolio of system solutions. This pre-assembled solution addresses many of the challenges facing fleet managers today and simplifies the ordering, production and customer service processes. By now integrating our own system, we are able to significantly increase the penetration rate of tire pressure management systems in our axle systems. Already today, about 30% of all trailers in the US are delivered with this type of system - and the share is growing. Next to North America, we will also offer the system in our other sales markets as of mid-2020. PressureGuard has proven itself in the market with a simple, yet robust design," said SAF-HOLLAND CEO Detlef Borghardt, in explaining the rationale for the acquisition. SAF-HOLLAND CFO Matthias Heiden adds: "Similar to the acquisition of Axscend in 2018, the acquisition of PressureGuard also focuses on expanding our technological capabilities. PressureGuard's expertise seamlessly integrates with our digital SMART product platform, giving us a compelling solution for tire management systems to offer our customers."

SAF-HOLLAND S.A., located in Luxembourg, is the largest independent listed supplier to the commercial vehicle market in Europe delivering mainly to the trailer markets. With sales of approximately EUR 1,139 million in 2017, the Company is one of the world's leading manufacturers and suppliers of chassis-related systems and components primarily for trailers, trucks, buses, and recreational vehicles. The product range comprises axle and suspension systems, fifth wheels, kingpins, and landing gear marketed under the brands SAF, Holland, Neway, KLL, V.Orlandi and York. SAF-HOLLAND sells its products to Original Equipment Manufacturers (OEM) on six continents. The Group's Aftermarket business supplies spare parts to the service networks of Original Equipment Suppliers (OES), as well as to end customers and service centers through its extensive global distribution network. SAF-HOLLAND is one of the few suppliers in the truck and trailer industry that is internationally positioned in almost all markets worldwide. With the innovation campaign SMART STEEL - ENGINEER BUILD CONNECT, SAF-HOLLAND combines mechanics with sensors and electronics and drives the digital networking of commercial vehicles and logistics chains. More than 4,400 committed employees worldwide are already today working on the future of the transportation industry.