Palfinger Buys Brazilian Manufacturer Madal
AUSTRIAN loader crane manufacturer Palfinger has acquired a 91% share of Brazilian crane manufacturer Madal S.A.
Madal has revenues of USD 15m and is the South American market leader in hydraulic truck cranes and other hydraulic lifting equipment, Palfinger said.
The acquisition marks the next stage in the Austrian company's internationalisation strategy. Madal-Palfinger will have access not just to the Brazilian market but to the whole of South America. Madal has a network of about 33 dealerships in 10 South American countries. State Capital, was the Financial Advisor for Madal, Luca Longobardi and Paulo Saraiva,founder and partner of the US Investment bank, guided Walter Dal Zotto, Madal's main shareholder throughout the entire transaction.
About Palfinger
PALFINGER's vigorous growth continued in the first half of 2001. Despite the decline in sales of truck cranes, revenue climbed by 14.8 percent to EUR 180.0m and operating profits (EBIT) rose by 11.8 percent to EUR 25.7m. This improvement in performance proves the correctness of PALFINGER's multi-product strategy, as well as demonstrating the success of its new products, such as hook loaders, tailgates and the MOBILER range.
The profit before tax increased by 13.1 percent to EUR 23.5m, while the consolidated net profit for the first half-year amounted to EUR 15.4m. Compared with the same period last year, this represents an increase of 13.8 percent.
Earnings per share rose to EUR 1.67. Adjusting for the capital increase in June 2001, this represents a year-on-year increase amounting to 13.6 percent.
Finance for this expansion and for the improvement of PALFINGER's capital structure generally came from a capital increase. In a one-for-ten rights issue at EUR 34, PALFINGER placed 837,000 new shares with shareholders in Austria and Germany. The rights of the principal shareholder were largely waived, with the result that the free float increased to 36 percent.
Waning interest in capital investment led to a fall in sales of truck cranes. Revenues of the truck crane segment nevertheless climbed by 21.9 percent to EUR 78.8m, as a result of the continuing trend towards large cranes and cranes increasingly equipped with higher value add-ons.
The Hydraulic Systems Division has become a reliable generator of turnover. Sales were bumped up another 25.9 percent to EUR 32.9m, though EBIT shrank by 68.0 percent to EUR 0.5m. This decline is attributable primarily to planned start-up costs in connection with PALGATE-tailgates and to investment in the integration and expansion of the GUIMA Group in France. The two new profit centres, High Tech Carrier and E-LOGISTICS are working hard to have their products ready for the market shortly.
For the business year 2001, Management is predicting continuing growth for the PALFINGER Group, coming principally from the new products, hook loaders, tailgates and the MOBILER range, as well as from MADAL. However, business developments in Europe and the Americas can be expected to have a significant effect on the final results. Despite an excellent second quarter, any further slowdown in the global economy is bound to impact on Group profits.
A major project in the second half-year will be the reorganization and integration of MADAL. In Europe, PALFINGER will continue to push PALGATE-tailgates and the MOBILER range in their markets.
About State Capital
State Capital is a leading independent Merchant bank with offices in USA and Brazil, focused on providing financial advice about significant mergers, acquisitions, restructuring, financing, capital raising, and private equity.
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At State Capital, we are constantly monitoring fundamental factors that drive merger and acquisition and capital raising transactions for our sector's coverage, business services investment banking clients and for private businesses generally. Private equity groups, those professional money managers who aggregate capital from institutional investors such as pension funds, insurance companies, endowments and corporate investment vehicles to invest in private companies.
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