Gulf Oil and Gas accountACCOUNT

Alimak Group Acquires Avanti Wind Systems

Source: www.gulfoilandgas.com 12/5/2016, Location: Europe

Share |
Avanti Wind Systems A/S (“Avanti”) is the market leader in vertical access solutions for wind turbine towers with a strong global footprint. The acquisition broadens and diversifies Alimak Group´s product portfolio and offers an expansion into a growing area of renewable energy.

The enterprise value is 91 MEUR which corresponds to a normalized EV/EBIT of 9.5x (2016 proforma level). The acquisition will be financed through a bridge loan intended to be repaid by proceeds from a proposed rights issue of new shares with preferential rights for existing shareholders in Alimak Group AB (publ) (“Alimak Group”) of up to 800 MSEK.

Avanti offers vertical access solutions to the wind industry that are permanently installed, have a long lifecycle and are based on high safety requirements. Avanti was established in 1885 and has more than 30,000 service lifts installed globally. In 2016, Avanti´s net sales is expected to be 98 MEUR and it operates globally with six production facilities in Denmark, Spain, China, US and Brazil.

“The demand for service lifts for wind turbine towers is expected to grow the coming years due to increased heights of the towers and increased safety requirements. The acquisition expands and diversifies our offering of vertical access solutions for industrial customers globally, enables cross selling opportunities and adds an opportunity to expand after sales well in line with Alimak´s strategy and business model”, says Tormod Gunleiksrud, CEO of Alimak Group.

“Becoming part of Alimak Group enables Avanti to continue its development of best in class safety products and solutions to the benefit of our customers within the wind industry. I see this acquisition as the perfect strategic fit for Avanti, and we look forward to becoming part of the global leader in vertical access systems” says Erik Laursen, CEO of Avanti Group.

Through the acquisition, Alimak Group takes another step forward in the global vertical access industry and the annual group net sales will increase from approximately 3,200 MSEK to 4,200 MSEK, while the number of employees will rise from 1,900 to 2,300. The globally installed base will increase from around 36,000 to 66,000 units. The acquisition is subject to customary regulatory approvals and is expected to close in the first quarter of 2017. Synergies will primarily be found in the supply chain, through cross-selling and in expansion of the aftersales offering. The acquisition is expected to be EPS accretive and contribute positively to cash flow. Integration costs are estimated to approximately 43 MSEK.

The acquisition will be financed through a bridge loan arranged by Alimak Group´s existing banks. Upon completion of the acquisition, Alimak Group will have a capital structure with an expected leverage (net debt/EBITDA) of around 3.7x, which exceeds the targeted leverage of 2.0x.

Wind Energy News in Sweden >>

Austria >>  2/22/2017 - Open interest volume (OIV) increased in January for selected US commodity markets such as agriculture, crude oil, copper, precious metals, agriculture...
Norway >>  2/13/2017 - Statoil awards Simon Mokster Shipping AS contracts for three emergency response and rescue vessels (ERRV), and Havila Shipping ASA for one ERRV. The c...

Norway >>  2/13/2017 - Preliminary data for November shows total European stocks fell by 12.8 mb to stand at 1,125.8 mb, which is 12.2 mb, or 1.1%, below the same time a yea...
Norway >>  2/8/2017 - Aker Solutions was awarded two framework agreements to provide concept and front-end engineering (FEED) services for BP globally. ...

Austria >>  2/6/2017 - Month-on-month (m-o-m), the ORB ended 2016 nearly 20% higher, or up by $8.45, in December to average above $50/b for the first time in a year-and-a-ha...
Austria >>  1/30/2017 - For 2017, demand for OPEC crude is projected to increase by 0.9 mb/d to average 32.1 mb/d. The first and the second quarters are expected to increase ...

Related Categories: Biomass Energy  General  Geothermal Energy  Hydropower  Photovoltaic Solar Energy  Solar thermal Energy  Wind Energy 

Related Articles: Biomass Energy  General  Geothermal Energy  Hydropower  Photovoltaic Solar Energy  Solar thermal Energy  Wind Energy 


Sweden Oil & Gas 1 >>  2 |

More News

 

Oil & Gas Companies in Sweden >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Privacy Policy.