13.10.2005

CTE detail Effer Group purchase

Yesterday evening at the SAIE fair in Bologna, CTE released details of its takeover of the Effer group. The company has purchased most of the assets of the operational companies within Effer Holding, including the production plants, tooling, equipment, designs and brand names etc..

The purchase has been made through a new company, SOL.GE, which is 80 percent owned by CTE and 20 percent by Altri partners, a consortium of investors which includes the Effer holding CFO Roberto Meneghinello.

SOL.GE paid €30 million for the assets, based on €25 million to the receivers of Effer Holding plus a commitment to spend €5 million tooling investments.
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At the CTE-Effer announcement (L-R)Mr Piovan, commercial director CTE, Lorenzo Cippriani CEO of CTE, Roberto Meneghinello CFO of Effer and Ketty Furlan communications manager CTE

Effer holding failed, due to its inability to meet the repayment deadline of a maturing capital investment debt. Heavy losses on certain deals in the UK, Germany and Switzerland caused a cash crisis that then prevented the group from deferring or re-financing the loan without the shareholders increasing the share capital. Something that they were not willing to do.

The old debts will remain with Effer Holding, which is likely now to go into liquidation. Lorenzo Cippriani of CTE said he believed that the sales of the group’s assets would provide a reasonable payout for the creditors of the failed group.

Roberto Meneghinello stressed that in spite of the failure Effer had a positive EBITDA and was trading profitably at the operational level.

The purchase includes Effer USA, which is now likely to represent the products of the combined group, although Cippriani was careful to stress that any changes or consolidation to the groups distribution would be treated on a case by case basis with each considered fully on its merits.
Effer Denmark and Effer Greece was not part of the purchase and discussions will now be held with those entities regarding distribution potential.

The new grouping will be restructured with four main divisions, Self Propelled aerial lifts, Truck mounted lifts and fire fighting, Loader and marine cranes and Material handling elevators.

See CTE buy Effer Oct 11th