08.11.2013

Manitex to acquire Valla

Crane and port handling group Manitex has agreed in principal to acquire Italian industrial pick & carry crane manufacturer Valla.

Manitex International chief operating officer Andrew Rooke said: "In line with our stated strategy to grow, both through new product development and complimentary acquisitions, we have reached an agreement in principle, to acquire Valla, the Piacenza, Italy-based manufacturer of a comprehensive line of precision pick and carry cranes with lifting capacities from 2.5 to 90 tonnes.”
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The Valla 120 EVO

“Valla cranes are sold through specialised agents and distributors for a variety of end markets such as petrochemical, construction, aerospace and automotive. Although not expected to contribute materially to our results in the immediate term, it has a unique array of highly desirable crane products that complement our niche crane offerings, extending our product portfolio and enhancing our overall market position."

"Valla reported annual revenues in 2012 of approximately $7.5 million and EBITDA of $0.7 million. The closing, which is subject to the execution of definitive documentation, is expected shortly."

Nine month results

Manitex also announced its results for the nine months to the end of September, total revenues were up almost 21 percent to $179.6 million, while pre-tax profits came in at $10.3 million 11 percent up on last year.
Moving on to the third quarter revenues improved over 7.5 percent to $57.5 million, while pre-tax profits remained flat at $3.8 million.

Chief executive David Langevin said: "Despite a very slow overall economic environment, we posted another solid quarter of growth, putting us on pace to reach a record level of sales and profits for the full year 2013. We intend to continue to grow through the introduction of innovative niche products, such as our new 15, 30 and 70 ton crane models along with acquisitions such as Sabre, which closed during the quarter, which fit our specialised product strategy. Given the state of the global economy, and our higher production levels, our backlog is also in good shape."

"The quarter provided a healthy eight percent year over year revenue increase, but as anticipated, was slightly below the record numbers achieved in the second quarter of 2013,” adds Rooke. “With a subdued North American economy and with many European economies also under pressure, it was notable that we maintained a healthy order intake in the quarter. Backlog at September 30 was $96.7 million, providing some helpful visibility into the next few quarters.”

Vertikal Comment

Another good set of numbers from Manitex, which are overshadowed by announcement that it is planning to take Valla over, as the American based group adds to its Italian presence.

Valla has a solid range of product, but has struggled a little in recent years allowing a number of dynamic competitors to emerge on its doorstep. However with a strong crane orientated owner behind it the business has a great deal of potential. The fact that it now has other competitors could0 actually help as more participants push the advantages of mobile industrial cranes and help expand the market.

However this move will certainly give other Italian industrial crane producers reason to be concerned.