25.09.2008

Palfinger acquires in USA

Palfinger the Austrian based loader crane and aerial lift manufacturer has acquired Omaha Standard a leading producer of truck bodies and tail lifts.

Omaha Standard is a family-run business, established over 80 years ago with almost all of its sales of service truck bodies, tail lifts and tippers made within North America.
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An Omaha Standard pick-up service body

The company employs around 450 mostly at its state-of-the-art manufacturing and assembly plant with advanced E coat paint facility in Council Bluffs, Iowa, along with nine body workshops across the USA. It also distributes its products through a network of around 400 dealers.

Palfinger’s chief financial officer designate, Christoph Kaml, who is currently managing director of Palfinger America said: “In the past few years Omaha Standard has heavily invested in the expansion of its production site which boasts a high-tech plant and efficient production processes. Its standards are truly on a par with those of Palfinger in every respect.”

”The ongoing financial and economic crisis in North America has prevented necessary capacity utilisation from being achieved thus far. For this reason both companies stand to profit from this acquisition. Omaha Standard ideally complements our existing operations in this market, in terms of both product portfolio and production and distribution capacities. As a result new distribution channels are now available to Omaha Standard, and there is of course more potential for utilisation of capacities.”

Omaha Standard has revenues in the region of €55 million which will effectively double Palfinger’s North American revenues taking sales in the region up to around €100 million or 10 percent of Palfinger group sales.

Palfinger plans to utilise Omaha’s production facility to assemble its other products in order to provide more protection against currency swings.
Omaha Standard will become a subsidiary of Palfinger USA with the Omaha facility continuing under the leadership of its existing management team.

The takeover takes Palfinger’s manufacturing or assembly locations in North America to four, while the distribution network will increase to ten owned locations, 150 independent dealers plus 500 sales and service centres.

Herbert Ortner, Palfinger’s chief executive adds: “The current situation in North America provides us with the opportunity to expand our business in this exciting market by actively participating in the consolidation of the market. With Omaha Standard we have established a sound platform for achieving future growth in the North America area and increasing local value creation.”