19.09.2012

Palfinger acquires in Brazil

Palfinger has acquired Brazilian hydraulic component manufacturer Tercek which includes its bus wheel-chair lift division Líbero.

The transaction will see Palfinger acquire all of the outstanding shares in Tercek, which is based in Caxias do Sul, Brazil. The company was looking for a strong partner to help fund its plans to increase market penetration and expand. The deal is expected to complete very quickly. The Tercek plant will be relocated to Palfinger’s facility which is also located in Caxias do Sul.
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Tercek is classified as a small-sized high innovation enterprise and as such receives funds from the national Studies and Projects Finance Organization (FINEP). Líbero bus lifts represent a new product sector in Brazil that is expected to have enormous growth potential. From 2014 on, all municipal buses will be required by law to be equipped with a bus lift for passengers with limited mobility.
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A Líbero bus lift

The bus market in Brazil has recorded annual growth rates of around eight percent over the past few years. In connection with the further expansion of infrastructure and public transport, it is expected that this will continue well into 2016 with the World Cup and 2016 Olympics.

Palfinger chief executive Herbert Ortner said: “For Palfinger, South America is a growth market in which we want to strengthen our presence with products beyond loader cranes. Líbero is a first-rate product for a growing market segment, and it conforms to regional requirements. In Great Britain we are already in the market with passenger lifts, and we are developing regional products in the rest of Europe as well. The takeover of Tercek is a small but valuable step for our growth in South America.”

Vertikal Comment

This looks like an excellent move for Palfinger building its tail lift/passenger lift business in a regional market set to expand rapidly. Depending on what it paid, the deal should pay off rapidly, showing a contribution next year as Palfinger uses its financial and manufacturing muscle to exploit what looks to be a very good product with a number of patented features.

Whether the component business also offers anything is a moot point, however it all helps build its local presence in this dynamic market.