Acquisition of the marine and windmill-power plant crane business of Palfinger systems GmbH
Market leader in cranes for offshore wind power plants
Numerous synergies with NDM in ship-mounted cranes
The PALFINGER Group is acquiring the marine crane division of Palfinger systems GmbH, thereby expanding its marine portfolio. The business acquired from Palfinger systems GmbH, which is controlled by the Palfinger family, is well positioned in the marine crane segment and in addition is the market leader in cranes for offshore wind power plants. In 2009 the division generated revenues of almost EUR 30 million.
When taking over NDM, a Dutch manufacturer of davits and deck equipment, in July 2010, PALFINGER announced its intention to expand its marine crane business. Herbert Ortner, CEO of PALFINGER AG, explained the Group’s strategic planning: "With the acquisition of NDM we have taken an excellent opportunity of opening up a new customer segment for cranes. At the time we took this step, we were already planning to strengthen this business quickly through another acquisition. By taking over the marine crane division of Palfinger systems we have become one of the leading suppliers". He went on to state: "This division has been recording good margins that are already now well above the level of 2009. Having marine cranes once again in our product range is therefore a pleasure in every respect".
The market of marine cranes recorded a slump in 2009 but has been showing a distinct recovery in the current financial year. The offshore wind power business is a promising market with great future, suggesting exceptionally high growth rates for the years to come.
With the marine division, the PALFINGER Group also acquires manufacturing sites in Slovenia and Croatia. Numerous synergies present themselves with the existing business of the Group in the development and production of cranes and in particular in sales and service of the marine business.
The purchase price that is now payable is governed by the value of the assets taken over. In addition, Palfinger systems will be entitled to a profit-based payment in 2016, based on the results generated by the division taken over in preceding years. "We have thus established clear financial criteria for the present transaction between the Palfinger family and PALFINGER AG, which was of great concern to both parties", elaborated Ortner.
Through this acquisition the PALFINGER Group will be firmly rooted in two promising customer segments with great future potential that will also support the further internationalisation and profitability enhancing processes. In the future the operations of the marine business will contribute approximately 8 percent to the Group’s revenue.