Alimak has acquired Australian based international permanent façade access company Facade Access Group for a total of A$120 million ($91 million).
Facade Access is privately owned and controlled by private equity firm Wolseley Private Equity, and based in Melbourne, Victoria. It has revenues in the region of A$150 million ($113 million)with over 600 employees and has installed more than 10,000 systems over the past 50 years.
The company operates as two business: - CoxGomyl which was a combination of Cox from Australia, Gomyl in Spain and Cradle Runways in the UK. The company specialises in Building Maintenance Units with a focus on architecturally challenging high rise buildings such as the ‘Walkie Talkie’ tower in London. A large part of its product range comprises suspended platforms and the support system cranes which tuck away into the building when not in use. The business is global with two production facilities in Spain.
And Manntech which is the old Mannesman Facade lifts business – (MannesmanTechnology), that the group sold off in 1999. The business is still based in Mammendorf near Munich in Germany and has a similar range of products and abilities to Cox Gomyl, but mainly operates across Germany, the Netherlands, UAE, USA and Hong Kong.
The transaction is subject to regulatory approvals but is expected to complete by the end of the year. The acquisition will be funded by expanding Alimak’s existing credit facilities and the company says that Integration costs are estimated at SK65 millon ($7.2 million).
Alimak chief executive Tormod Gunleiksrud said: “The complimentary combination of the two companies, especially when between the permanent installed solutions of Facade Access Group to Alimak’s Industrial Equipment, will enable scale and synergistic advantages in the supply chain, expand overall business opportunity, including further development of the aftersales offering. Hence, I see the acquisition as a strong strategic fit and I am convinced that it will generate value to our shareholders.”
This looks on the surface like an excellent move by Alimak, the façade maintenance equipment business is relatively long term and consistent, with a lucrative inspection and maintenance side to it, not to mention long term upgrades and replacement opportunities.
As Façade Access is privately held, we have no idea on its profitability. But you would expect businesses such as this to be relatively profitable.