Polish trailer manufacturer Wielton has placed a binding bid on France’s leading trailer brand, Fruehauf.
According to Poland Today, the takeover is part of Wielton’s long-term strategy to close up with Europe’s top trailer OEMs. However, the transaction is still subject to approvals by relevant regulatory bodies as well as Fruehauf’s employee council.
Currently owned by a group of executives following a management buyout in 2007, Fruehauf’s trailer and semi-trailer sales came to approximately 3,400 units last year, with an estimated market share of 20 per cent.
While experts still consider it a profitable business, the declining French trailer market recently put a strain on the business. The Wielton deal could therefore give France’s leading brand vital momentum to retain its market position – especially since Wielton CEO Andrzej Szczepek announced he intended to keep production in France in its current shape and scale.
With a staff of approximately 1,250, Wielton posted net earnings of around €6.2 million last year on a turnover of €142.6 million, according to Poland Today.
“The takeover is part of Wielton’s strategic efforts to become one of Europe’s top trailer makers by boosting annual output in excess of 10,000 units and reaching sales revenues of PLN 1bn (€238 million),” the magazine said in a report.