JOST acquires Crenlo do Brasil: JOST gains access to the Brazilian off-highway and agricultural machinery industry, one of the biggest agricultural markets worldwide
JOST acquires LH Lift: JOST enhances its product portfolio with three-point linkage and hitches for agricultural tractors, accessing new revenue pools
Expected additional sales contribution of around EUR 100 million: Crenlo do Brasil and LH Lift will strengthen JOST’s agricultural business, unlocking new profitable growth opportunities through expanded product portfolio and regional coverage
Combined purchased price of EUR 56 million: Purchased price will be fully financed with cash and existing credit lines
Value accretive transactions: The agreed purchase price corresponds to 5.1x EBITDA in 2023 and are immediately accretive to EPS with the potential to enhance JOST's current strong financial profile short- to midterm.
Signing of two purchase agreements
JOST has signed a purchase agreement to acquire 100 % of the share capital in Taxi Brazil Holdings B.V., the Netherlands, the sole shareholder of Crenlo do Brasil Engenharia de Cabines LTDA (“Crenlo Brazil”) as well as another purchase agreement to acquire LH Lift Oy, Finland.
Together, these acquisitions will expand JOST’s current product portfolio while at the same time significantly broadening JOST’s current global reach with new markets and new customers in Brazil and in Asia, also strengthening JOST’s market position and offerings in Europe. With the acquisition of Crenlo Brazil, JOST gains immediate access to the Brazilian off-highway and agricultural machinery industry, one of the biggest agricultural markets worldwide. With LH Lift, JOST adds three-point linkage and hitches to its product portfolio, enhancing JOST’s offerings to agricultural customers. Together, these two companies further strengthen JOST’s strategic position in the global agricultural machinery industry, increasing JOST’s value as an international supplier to agricultural OEMs.
Crenlo do Brasil
Headquartered in Guaranésia, Brazil, Crenlo Brazil has been producing applications for the agricultural, mining, construction and forestry machinery industry in Brazil for over 23 years. It counts a wide range of major global blue-chip original equipment manufacturers (OEMs) active in Brazil among its customers. Crenlo Brazil owns and operates a versatile, best-in-class manufacturing facility in the state of Minas Gerais, which offers promising operating leverage opportunities and will serve as the manufacturing backbone for JOST’s off-highway activities in the Southern hemisphere. The experienced management team, with in-depth know-how and significant expertise in the Brazilian construction and agricultural machinery market, will remain part of the organization after the acquisition, supporting JOST’s strategy to grow into the sizable Brazilian off-highway and agricultural market, accelerating JOST’s profitable growth in the region. Future synergies will result from JOST’s ability to leverage Crenlo Brazil’s engineering and production capabilities to manufacture and market its agricultural front loaders and implements as well as further agricultural products in Brazil.
LH Lift
LH Lift, a family-owned company, was founded in 1975 and is headquartered in Laukaa, Finland. It has production sites in Finland and China. The company supplies products to OEM tractor manufacturers in Europe, Asia and South America. The portfolio comprises three-point linkages and hitches as well as front linkages for tractors. LH Lift’s portfolio perfectly fits JOST offering to the agricultural tractor industry and can be scaled up significantly by leveraging the existing market presence of JOST Agriculture businesses. In addition to the sales synergies to be generated by using JOST’s wide distribution channels to market LH Lift’s products, JOST will be able to fully consolidate LH Lift’s production plant in Ningbo, China, into JOST’s already existing production facility in the same city.
Key steps towards JOST’s strategic expansion in the agricultural machinery market
Joachim Dürr, CEO of JOST Werke SE, said: "The acquisition of Crenlo do Brasil and LH Lift are key steps towards JOST’s strategic expansion in the agricultural machinery market. With these acquisitions and our investments into a new factory in Chennai, India, we significantly expand our global presence in South America and Asia and strengthen our market position in Europe. At the same time, we expand our product portfolio with new products with a significant growth potential worldwide. The two acquisitions will initially increase JOST's consolidated sales by about EUR 100 million and bring additional opportunities to rapidly grow our off-highway business with new emerging cross-selling opportunities. Together, we will transform JOST into an even more attractive partner for agricultural OEMs, able to provide and service customers with a wide range of innovative products and systems worldwide, thus reducing the complexity of supply chains for our global customers."
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