Cinven reaches agreement to acquire JOST Group
Highly attractive investment / Leading global manufacturer of systems, modules and components for the truck industry / Multiple growth drivers
Frankfurt, 10 June 2008 - Cinven, one of the leading international private equity firms, today announced that it has reached an agreement to acquire German truck supplier JOST group (â€œJOSTâ€). The purchase price is undisclosed. JOST is a leading global manufacturer of systems, modules and components for the truck industry, for example fifth wheels, towing hitches, landing gears and articulated steering systems. The company is active in all continents with its strong brands JOST, ROCKINGER, REGENSBURGER and TRIDEC. Several strong growth drivers provide for exceptional expansion opportunities: outstanding products with excellent brand reputation, a diversified customer base with high loyalty, growing international markets as well as acquisition opportunities in the core business and adjacent segments.
JOST employs approx. 2,000 employees in 20 countries and has a highly successful and sustainable business model that combines organic and external growth. Thus JOST has grown significantly faster than the market over the past five years and has been able to increase annual sales at double digit rates on average to around â‚¬445 million in 2007.
Last month JOST closed the acquisition of Tridec, one of the leading manufacturers of mechanical and hydraulic steering systems. Through the acquisition of TRIDEC, both companies will benefit from positive growth synergies: The product portfolio of JOST will be complemented and sales activities of TRIDEC will benefit from the worldwide distribution capabilities of JOST.
Bruno Schick, Principal at Cinven Germany, said: "Demand for trucks will continue to grow, also due to the strong economic growth in Eastern Europe and Asia. We are delighted to have acquired JOST, a fast growing leader whose brand stands for quality and safety. We will fully support the strategy of the outstanding management team and we will invest in growth, geographic expansion, product extension and the further strengthening of the market leadership."
JOST holds excellent market positions in its core markets. With locations in Eastern Europe, China, Brazil and India JOST is also very well-positioned for further development in these important growth markets. JOST has been active in China, the largest market for the truck industry worldwide, since 1992.
Lars Brorsen, Chief Executive Officer of JOST group: â€œWith Cinven, we are delighted to have a partner with whom we can continue our successful growth strategy. Cinven will financially support our ongoing international expansion as well as additional acquisitions. Thus JOST is well prepared to expand our leading position.â€
The transaction will be financed from the fourth Cinven fund which, with a volume of â‚¬6.5bn, is one of the largest funds dedicated solely to large European buyouts.
The transaction is subject to regulatory clearance.
Cinven is a leading international buyout firm, focussed on acquiring European-based companies valued at â‚¬500m and above. It has led transactions with a value in excess of â‚¬60bn.
Established in 1977, the firm invests in five key sectors: business and financial services; healthcare; industrials; retail, leisure and consumer; and technology, media and telecommunications (TMT).
Cinven has offices in London, Paris, Frankfurt and Milan and has announced plans to open offices in New York and Hong Kong. Wherever they are based, Cinvenâ€™s people work together as one team.
Cinven's investments include Springer (â‚¬2.1bn, Sept 03), Amadeus (â‚¬4.4bn, June 05), Frans Bonhomme (â‚¬893 million, Dec 05), Avio (â‚¬2.6bn, Dec 06) and Coor (â‚¬540 million, Dec 07). Cinven Limited is authorised and regulated by the Financial Services Authority. For more information: http://www.cinven.com/