SAF-Holland acquires V.Orlandi
Equipment manufacturer SAF-Holland Group has acquired a 70 per cent stake in Italian coupling system specialist V.Orlandi.
The purchase will cost approximately €39 million ($62 million). The parties have also agreed to grant SAF-Holland a call option for the rest of the company, which can be done at a later date.
The deal is expected to be completed by the end of Q2 2018, at the latest.
SAF-Holland noted that the V.Orlandi acquisition will enable it to strengthen its position “as the second largest player in Europe” and expand its specialty business with couplings and drawbar eyes for trailers and specialised commercial vehicles.
V.Orlandi generates around 20 per cent of sales with coupling systems for agricultural and forestry vehicles.
The company will continue to operate as an independent business unit under the established V.Orlandi brand. As part of the Group, V.Orlandi will also benefit from the additional growth prospects and use the global production and sales infrastructure to roll out its product range worldwide, SAH-Holland added.
Currently V.Orlandi employs 60 people and targets Western Europe, Russia, Asia and Australia. SAF-Holland has estimated the company will contribute €22 million ($35 million) in sales in the first full year following the acquisition.
Dr Matthias Heiden, Chief Financial Officer, SAF-Holland, said the acquisition will be funded entirely from the company’s existing cash.
“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,” Heiden said.
Detlef Borghardt, CEO, SAF-Holland, said the acquisition is the next step in the company’s 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,” Detlef said. “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.”