Palfinger grows ahead of reintegration
The Salzburg based Palfinger Group is taking another step towards growth by acquiring a 75% interest in the Dutch company Ned-Deck Marine B.V. (NDM).
NDM is one of the leading manufacturers of rescue boat davits. The company is headquartered in the Netherlands and has another production facility in Vietnam. It produces the standard segment of davit systems (A-frame davits and liferaft davits) and has posted steep growth in special applications for the Navy and Coast Guard. The existing management team will stay in place to safeguard the continued success of the company.
With its davit systems, NDM operates primarily in the market of ships with equipment fulfilling the requirements of SOLAS. The obligatory annual servicing of the safety equipment by the manufacturer or a party certified by the manufacturer makes after sales services a substantial part of total business operations.
‘Despite a 30% market decline, the revenue generated by NDM in 2009 remained stable. Further growth will also significantly add to the importance of the servicing business of existing equipment, said Herbert Ortner, CEO of Palfinger AG, when speaking of NDM’s future. ‘On the SOLAS market certified quality is of top priority.’
With a staff of approximately 100, NDM generated revenues of almost €20m in 2009. The Vietnamese production facility, benefiting from low wage costs as well as its proximity to the Chinese procurement market and to major target markets like Japan, Korea, China, and Vietnam, has also contributed to these revenues.
To further expand its ship crane business Palfinger is already planning another acquisition. The favoured target is the marine crane division of Palfinger Systems GmbH, which is owned by the Palfinger family and includes a business with a staff of approximately 150, generating approximately €30m in revenues. The due diligence of the business to be acquired will start in July. ‘We have been interested for quite some time in re-integrating the marine crane business into Palfinger AG as a meaningful and profitable supplement to our strategy’, said Ortner.
With these areas combined under Palfinger AG, the Group would have another profitable business unit with a significant world market share in the marine crane business.
