Upgraded hoists from Alimak Hek.

Upgraded hoists from Alimak Hek.

Alimak Group has acquired wind turbine vertical access specialist Avanti Wind Systems.

Avanti is the market leader in its sector with the deal diversifying Alimak Group´s product portfolio, while offering an expansion into a growing area of renewable energy.

The company is valued at €91 million and the acquisition will be financed through a bridge loan from Alimak’s existing banks, to be repaid by proceeds from an issue of new shares. There will be preferential rights for existing shareholders of Alimak Group of up to SEK 800 million €81.6 million).

Avanti provides permanently installed vertical access and has more than 30,000 service lifts installed globally. It has six production facilities in Denmark, Spain, China, US and Brazil, with 2016 net sales expected to be €98 million.

Avanti provides permanently installed vertical access and has more than 30,000 service lifts installed globally. It has six production facilities in Denmark, Spain, China, US and Brazil, with 2016 net sales expected to be €98 million.

“The demand for service lifts for wind turbine towers is expected to grow in the coming years due to increased heights of the towers and increased safety requirements,” says Tormod Gunleiksrud, Alimak Group CEO. “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.”

Erik Laursen, CEO of Avanti Group, said the deal would allow the company develop in line with customer requirements. “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.”

Through the acquisition, annual group net sales will increase from about SEK 3,200 million (€3256 million) to SEK 4,200 million (€428.5 million), 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 expected to close in the first quarter of 2017, with integration costs estimated to at SEK 43 million (€4.4 million).

The Board of Alimak Group will hold an Extraordinary General Meeting of shareholders in January to obtain an authorisation for the Board to approve the rights share issue. It will postpone the release of its 2016 year end report until 23 February.

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