13.09.2005

Effer to have new owner

The shareholders of Effer Holding have reached an agreement with a new investor, to buy into the company, following its filing for protection from creditors in late July.

The identity of the new investor cannot be disclosed until the agreement has been endorsed by the Commercial Court of Bologna, where Effer Holding S.p.A. is registered. A decision is expected before the end of the month.

Effer Holding SpA was wholly owned by the family of the founder and current chairman, Mr. Giancarlo Monti. At the last board meeting of Effer Holding, held in Bologna at the end of July, the directors and shareholders took the decision not to subscribe to a required increase in the Company's Capital. This forced them under Italian Commercial Law, to file for protection against its creditors under Italy's bankruptcy laws.

The company has since then had a period to allow the former owners to look for new investors in the company, while business activity continues as normal. The agreement has been finalized this week which will lead to the purchase of the company’s assets by the new investor.

A spokesman for Effer told Vertikal.Net that the change in ownership will strengthen the Effer and Biizzocchi brands both of which have new products to be launched at a number of shows, including SAIE in Bologna, ICUEE in Louisville

Vertikal Comment

The owners of Effer have been considering offers from several suitors since February and rumours of financial difficulties have dogged the company for over a year.

This new move should put an end to the uncertainty and provide a boost to the two operational companies.

The big question is of course, Who is the new owner? There is a good chance that it will be a company within the crane industry. The news that the investor is of Italian origin, need not exclude one of the bigger international companies, a number of whom have Italian subsidiaries which could be the purchaser.