Bonfiglioli Riduttori has acquired a 55 percent controlling interest in German crawler crane and heavy transmission manufacturer O&K Antriebstechnik from the Carraro group for €25.7 million in cash.
Carraro will retain a 45 percent stake in the business and assume a strategic role within the partnership supplying specific components to the company.
O&K Antriebstechnik specialises in the design and manufacture of planetary gear transmissions for heavy tracked machines including cranes, mining machines and marine applications.
The deal allows Bonfiglioli to extend its range of higher power transmission products that can be sold by its sales network, while Carraro increases its focus on transmission systems for agricultural and construction equipment.
Bonfiglioli has an option to acquire Carraro’s 45 percent stake, exercisable by 30 September 2020 on a fixed price setting mechanism. Carraro has the right to protect its minority holding, by among other things the appointment of an administrator with some veto rights.
Carraro chairman Enrico Carraro said: “The agreement with Bonfiglioli is a great industrial story, which sees two Italian companies join forces in a real partnership approach with a view to mutual development. This is a key step in the fulfillment of a strategic programme initiated in recent months. A few weeks ago the holding company Finaid announced its availability for a capital increase in support of the new three-year plan and to strengthen the business; today we are confirming our desire to further focus on the core business of transmission systems, while forging a strategic alliance that will bring us benefits in the medium term".
Bonfiglioli chairman Sonia Bonfiglioli added "For us this is the second very important agreement signed between our group and a major Italian company in just one year. In 2014, in fact, we announced the acquisition from a leading Italian company of the product lines dedicated to electromobility currently integrated at the plant in Forlì".
"Today, thanks to the partnership put in place with Carraro, we acquire the majority of O&K Antriebstechnik, one of the most respected companies in the world in the field of heavy duty gearboxes. This latter operation is targeted at completing our product range with applications on high power machines such as earth moving, construction and mining machines, as well as machines for the marine, port and airport sectors, thus extending the area of global leadership of Bonfiglioli in the transmission and power control field”.
The transaction expected to close by the end of December