Hiab sells company store in Mexico
Hiab has sold its 75 percent stake in its Mexican sales business, Hiab S.A. de C.V. (Hiab Mexico), to its partner CIPSA (Consorcio Industrial Puebla) which already owns 25 percent of the company.
The deal also includes a long term distribution agreement for the Americas region. Rafael Llamas will continue as the managing director of Hiab Mexico which also includes five locations and 70 employees. No details of the transaction, which is due to close at the end of the month, have been released.
Carl Gustaf Göransson, senior vice president of sales and markets at Hiab said: "Hiab's successful collaboration with CIPSA which already owns 25 percent of Hiab's sales company started back in 1976. By further developing our long-term relationship we are able to strengthen our leadership position and customer service in a key market. CIPSA is a respected partner, who has shown great commitment and high ambition to invest and take the company to the next level. We are very excited to take this step in Mexico. Hiab will continue to support the operations of to enhance competitiveness and customer satisfaction."
CIPSA managing director Marcos Mastretta added: "The unified ownership structure will allow us to fully execute our vision of being the leader in the construction industry. Now, we can focus on meeting the growing expectations of our customers in terms of providing innovative products and services to ensure their success."
This move follows the recent sale of the Hiab’s distribution companies in the Middle East and New Zealand. What we do not know for sure is how extensive the distribution agreement is.
The company statement says “for the Americas”. We have to assume that does not include all of North America, and that it is limited to Mexico and some central and south American markets? Either way the company is currently signing away large territories as an apparent ‘sweetener’ for companies to purchase the company stores.
This strategy may well work well, especially if the deal includes performance targets. If not then Hiab/Cargotec may soon regret having given away such extensive territories.