Materials handling equipment specialist, Hiab, part of Cargotec, has entered into an agreement to acquire the Effer loader cranes business from the CTE Group for an enterprise value of €50 million.
This acquisition means a significant advancement for Hiab's ambition to be the global leader in cranes and the preferred partner for its customers.
Since 2016, Hiab has fundamentally renewed and expanded its Hiab loader cranes portfolio to become the most modern in the market – just recently announcing its renewed light range cranes in May 2018. With the acquisition of Effer, Hiab will complement its loader cranes portfolio and expand its range of heavy cranes. Further Hiab crane brands include Loglift and Jonsered forestry and recycling cranes, as well as Argos loader cranes in Brazil, following its acquisition in October 2017.
Effer will continue to operate as part of Hiab under its brand and through its dealer network.
“I am happy to welcome Effer to the Hiab family,” said Hiab President, Roland Sundén. “This acquisition is a bold step in line with our growth strategy to be the global leader in on-road load handling and in particular in loader cranes, the industry that Hiab founded nearly 75 years ago.”
Effer, founded in 1965, has over 50 years of experience in developing and manufacturing knuckle-boom cranes, with its product range encompassing truck cranes, special application truck cranes and marine cranes. Effer is headquartered in Minerbio, Italy and has approximately 400 employees. Distribution is managed through a network of over 100 dealers covering 60 countries globally. Effer's sales in 2017 totalled €71 million and generated an operating profit of about €6.1 million.
“Through its size and global scale, Hiab offers the most optimal opportunities for continued growth for Effer and I am delighted that Effer is becoming part of an organisation with an equally proud past, passion for quality and reliability, and drive for innovation,” said Effer CEO, Lorenzo Cipriani.
“With a comprehensive crane portfolio and a strong global sales and service presence in complementary geographies, Hiab and Effer will jointly become a stronger partner for our customers, helping them reach their full potential,” said Hiab Senior Vice President Cranes, Joakim Andersson.
The acquisition is subject to regulatory approvals expected to be received in the second half of 2018. Effer's results will be consolidated into Hiab from the closing date.
(Image: Hiab President, Roland Sundén.)