DGAP-News: SAF-Holland SA

SAF-HOLLAND acquires majority stake in coupling system specialist V.ORLANDI S.p.A.
 

- Expansion of the specialty business with coupling systems and components for trucks and trailers

- SAF-HOLLAND strengthens its number 2 position in fifth-wheel couplings in the European market

- Acquisition expected to contribute sales of approx. EUR 22 million in the first full year and have a slight margin-accretive effect
 

Luxembourg, March 16, 2018 - SAF-HOLLAND acquires a 70 % stake in the Italian manufacturer of coupling systems for trucks, trailers, semi-trailers and agricultural vehicles V.ORLANDI S.p.A., based in Flero near Brescia, Italy.
SAF-HOLLAND will initially acquire 70 % of the shares in V.ORLANDI S.p.A. The purchase price amounts to approx. EUR 39 million. The parties agreed to grant SAF-HOLLAND a call option for the remaining 30 % interest in the company, which can be exercised at a later date. Closing of the transaction is expected no later than in the second quarter of 2018.
 

With V.ORLANDI, the Group is acquiring a supplier of couplings for trucks and specialty fifth wheels thereby strengthening its position as the number 2 player in Europe. At the same time, SAF-HOLLAND is expanding its specialty business with couplings and drawbar eyes for trailers and specialized commercial vehicles, for example, in the industrial, agricultural, forestry and mining segments. V.ORLANDI generates around 20% of sales with coupling systems for agricultural and forestry vehicles.
 

V.ORLANDI currently employs around 60 people and has two manufacturing locations in Northern Italy near Brescia. The company's target sales markets aside from those in Western Europe include primarily Russia, Asia and Australia. In the first full year following inclusion in the SAF-HOLLAND Group's scope of consolidation V.ORLANDI is expected to contribute approx. EUR 22 million in sales featuring a solid EBIT margin in the mid-teens.
 

At the signing of the contract, SAF-HOLLAND CFO Dr Matthias Heiden said: "The acquisition of V.ORLANDI will already make a positive contribution to the Group's earnings in the first year and have a slight margin-accretive effect. The acquisition will be funded entirely from our existing cash on hand."
 

The managing director Gianpietro Mascialino will continue in his role and will actively contribute to the company's future growth within the SAF-HOLLAND Group. After the takeover, the company will continue to operate as an independent business unit under its strong, well-established brand. As part of the Group, V.ORLANDI will benefit from additional growth prospects and SAF-HOLLAND will profit from attractive cross-selling opportunities. Going forward, V.ORLANDI will use the SAF-HOLLAND Group's global production and sales infrastructure to roll out its product range worldwide.
 

SAF-HOLLAND CEO Detlef Borghardt summarizes the motives: "With our acquisition of V.ORLANDI, we are taking the next step in implementing our 2020 growth strategy. First, we are strengthening our strategic market position in fifth wheels and expanding our know-how in coupling systems for trailers and specialty vehicles. Second, we are expanding our presence in important regional markets such as Russia, the Middle East and Australia. V.ORLANDI also has a strong spare parts and accessories business that combines well with our Aftermarket activities."
 

About SAF-HOLLAND:
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 and Neway. SAF-HOLLAND sells its products to Original Equipment Manufacturers (OEMs) 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 3,500 committed employees worldwide are already working today on the future of the transportation industry.