07.11.2007

Cavotec MSL sells Gantrex

Crane runway product specialist Cavotec MSL is to sell Cavotec Gantrex to the Belgian Gantry Group. An agreement was reached today for the sale of Cavotec Gantrex in Ajax, Ontario, Canada, and all related Gantrex operations in the Americas.

Cavotec Gantrex was acquired by Cavotec in November 2002, and last year generated revenue of $9.7 millionm(£4.7 million).

Gantry will take ownership of the Gantrex operations on January 1st, 2008. Cavotec MSL and Gantry will reverse the historical cross minority ownerships of certain operations in Asia, and Cavotec MSL will retain its exclusive right to act as distributor for Gantrex products in South Africa and Australasia.

Cavotec MSL says that the money raised from the sale will be used to find future acquisition candidates.

“The sale of Gantrex will free up financial and managerial resources inside of Cavotec to further develop our core business while, within the Gantry Group, Gantrex’s people and products will receive increased attention and support. Basically, everybody wins,” said Ottonel Popesco, Cavotec MSL’s Chief Executive Officer. “Additionally, we are in ongoing discussions with potential acquisition targets both in the United States and Europe. There are great companies out there operating in our core markets whose technologies would complement our existing innovations very well. We are committed to growing the Group both organically and from acquisitions.”

“We are very pleased to acquire the Gantrex operations in the Americas, thus giving us the opportunity to provide a better and more efficient service to our Gantrex customers worldwide. This agreement with our long-term partner, Cavotec, will provide both organizations with a good platform to strengthen their respective core business in this part of the world,” said Didier Haegelsteen, Gantry’s Chief Executive Officer.