05.12.2016

Alimak acquires Avanti

Swedish based mast climber and hoist manufacturer Alimak has acquired Avanti Wind Systems for €91 million, and will launch a rights issue of up to SK800 million. ($86.7 million).

Avanti Wind is a leading provider of rack and pinion & ladder type service elevators, ladders and fall arrest equipment for wind turbines, with over 30,000 units installed. Revenues this year are expected to be in the region of €98 million. Founded as a ladder manufacturer in 1885, it is based in Denmark, and operates in nine countries with six production facilities in Denmark, Spain, China, US and Brazil.

The acquisition will be financed through a bridge loan intended to be repaid by proceeds from a new rights issue of new shares with preferential rights for existing shareholders. The company will call an Extraordinary General Meeting in January 2017 in order to obtain approval for the rights issue with with everything completed by the start of the second quarter next year.
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Alimak chief executive Tormod Gunleiksrud said: “The demand for service lifts for wind turbine towers is expected to grow the coming years due to increased heights of the towers and increased safety requirements. The acquisition expands and diversifies our offering of vertical access solutions for industrial customers globally, enables cross selling opportunities and adds an opportunity to expand after sales well in line with Alimak´s strategy and business model”.

Avanti chief executive Erik Laursen added: “Becoming part of Alimak group enables Avanti to continue its development of best in class safety products and solutions to the benefit of our customers within the wind industry. I see this acquisition as the perfect strategic fit for Avanti, and we look forward to becoming part of the global leader in vertical access systems”.

Alimak's main shareholders, Triton, Lannebo Fonder, Swedbank Robur and York Capital Management, which controls almost 60 percent of Alimak’s equity have already indicated their intention to vote in favour of the rights issue.

Vertikal Comment

Alimak is certainly on a mega growth spurt at the moment, expanding into areas that have some strong synergy with what it does, and yet adding substantial diversification away from the cyclical construction industry with a focus on business where service contracts and upgrades etc are the most important part of the business. It looks as though it is managing to find some first class acquisition targets and managing to land them. While it is probably paying a premium for them, they look to be pretty sound investments.