Palfinger bids for TTS
Loader crane and access platform manufacturer Palfinger has made a bid for publicly quoted Norwegian company TTS Group ASA.
Palfinger is offering NK 5.60 cash per share, subject to a positive outcome of a due diligence audit, TTS is likely to recommend the offer to its shareholders. The offer is already supported by 67 percent of the shareholders, including the the Skeie family, which holds a 32 percent stake. The offer will become effective on the approval of 90 percent of shareholders. If approved it is expected to close towards the end of the year.
The TTS group designs, develops and supplies equipment , solutions and services for the marine and offshore oil and gas industries. It was established in 1966 and is based in Bergen. It has been listed on the Oslo Stock Exchange since 1995. The company has grown rapidly since 1996, through a series of strategic acquisitions, and has established a leading position in the market for marine handling equipment, with a strong foothold in China through three 50 percent owned companies. It also has operations in Belgium, Brazil, China, Finland, Germany, Greece, Italy, Korea, Norway, Poland, Singapore, Sweden, United Arab Emirates, USA and Vietnam.
Palfinger says that there is only a marginal overlapping of products and services between TTS and Palfinger Marine and would make Palfinger one of the top three players in the market.
Please register to see all images
TTS produces a wide range of marine cranes up to 2,000 tonnes capacity
Palfinger chief executive Herbert Ortner said: “Together with the acquisition of Harding, this would place Palfinger Marine among the global top three ship equipment suppliers. In the future, we want to be a one-stop shop, internationally, offering all maritime customer industries competitive products and services. With a staff of approximately 3,000 across 22 countries and revenue of more than €600 million, Palfinger Marine would contribute around a third of our revenue from 2017 onwards, hence becoming a strong second mainstay,”
TTS chief executive Toril Eidesvik added: “TTS has clear ambition to grow through the development of a wider range of products and product packages within the deck- and cargo handling equipment to the various vessel segments. Joining Palfinger Marine, and potentially also Harding, will give large synergies and create a solid platform for the planned growth.”
Palfinger plans to finance this acquisition via a package that will include term loans, hybrid capital and the issue of promissory note loans.