In September 2018, Eurocrane announced that it planned to offer EUR 49 million (about RMB 389 million) to acquire 100% shares of RVH and RVB, through the acquisition subject of Eurocrane Austria Holding and eventually realized 100% control over Voith-Werke Ing. A. Fritz Voith Gesellschaft m.b.H & Co KG (hereinafter referred to as [Voithcrane"). All parties to this transaction signed an Equity Purchase Agreement on September 11, 2018.
On the evening of December 11, 2018, Eurocrane (China) Co., Ltd. (hereinafter referred to as [Eurocrane") issued a notice stating that it had completed the transfer of shares. According to the notice, on December 10, 2018, all parties to the transaction signed a Transfer Memorandum and other legal documents and confirmed that all transfer conditions had been met. As agreed in the Equity Purchase Agreement, Eurocrane paid all transaction considerations. The shares of RVH and RVB were transferred to Eurocrane Austria Holding. The company had completed all transfer matters successfully. Upon the completion of the transfer, Eurocrane Austria Holding directly held 100% shares of RVH and RVB and eventually held 100% shares of Voithcrane.
A high-end European crane brand was acquired and complementation in product and technology was achieved
Headquartered in Linz, Austria, Voithcrane is a company mainly engaged in the R&D, manufacture, installation and after-sales services of special cranes and material handling solutions. The main products include automatic cranes, metallurgical cranes, electromagnetic cranes, vacuum lifters, stacking cranes and grab bucket cranes, etc. The company has more than 60 years of profession experience in the special crane industry. Being technically innovative, safe and reliable, the products enjoy a high reputation in the European market and also in the automobile, metal, steel and wood industries, etc.
As a leader in the niche markets of special crane and material handling industries, Voithcrane has industry-leading automatic and intelligent material handling technologies. The products can better satisfy the trends of automation, intelligence and unmanned of future factories and the demands for professional services and an excellent brand.
Through this acquisition, Eurocrane will further strengthen its layout in the field of intelligent manufacturing, obtain the world`s leading R&D and manufacturing technologies in automatic and intelligent material handling solutions quickly, provide customers with the world`s leading intelligent equipment and guide the intelligent upgrade of domestic material handling industry. On the other hand, this will also make Eurocrane acquire long-standing high value-added brands, sophisticated technologies and experienced management teams, enhance its competitiveness in high-end crane and material handling industries, conform to the company`s internationalization strategy and help further expand its overseas markets and enhance brand influence. Also this acquisition has a positive impact on its future business and is conducive to its long-term growth.
The target companies had a stable financial status and the acquisition would significantly enhance the company`s performance
According to Eurocrane`s previous notice, the net operating profits of RVH, RVB and Voithcrane after tax from February 1, 2017 to January 31, 2018 were EUR 4.6547 million or about RMB 36.9965 million, accounting for 57.97% of Eurocrane`s net profit in 2017. Voithcrane has long maintained a steady balance sheet and relatively good profits. In FY 2017/2018, Voithcrane didn`t have any bank liabilities, the EBITDA rate was 19% and the net profit margin was 13.2%. In the future, Voithcrane will continue to meet growing market demands for special cranes and automatic and intelligent material handling solutions, launch differentiated products and solutions, expand wider industrial applications, branch out to other parts of the world and further enhance sales volume and profitability.
The successful completion of this transaction brings RVH, RVB and Voithcrane into the scope of Eurocrane`s consolidated statements and will improve the company`s profitability.
Significant progress has been made in the expansion of oversea markets and the implementation of global strategies would be further promoted
In recent years, relying on advanced technology, safe and reliable performance and professional services, Voithcrane has possessed a broad and stable customer base in Europe. Siemens, BMW, Audi, Schuler, Thyssenkrupp, Vestas, Voith Paper, Alstom, Wartsila and many other internationally renowned firms are all long-term users of the company. At present, Voithcrane`s sales revenue mainly comes from European countries. With increasing demands for special cranes from Europe and other parts of the world, the company`s orders show a steady upward trend.
Through this acquisition, Eurocrane can acquire long-standing high value-added brands, sophisticated technologies and experienced management teams quickly, take a place in the global high-end special crane market and potentially enhance its global influence in the future significantly.
It is reported that Eurocrane currently exports to more than 30 countries and regions in North America, Europe, South America, Southeast Asia, Central Asia and Africa, etc. The company expanded its overseas market effectively in 2017 and achieved a year-on-year growth of 32.44% in terms of oversea sales revenue throughout the year, accounting for 17.4% of its total revenue.
China`s [One Belt and One Road" strategy drives Chinese manufacturing to go abroad. As widely-used important equipment, lifting machinery can gain more business opportunities therefrom. This acquisition is an important initiative for Eurocrane to seize the historic opportunity of [OBOR", explore overseas markets actively and promote its internationalization. Austria is a country along [OBOR" and has a broad prospect of business cooperation with China. This acquisition will help the company increase the degree of involvement in markets along [OBOR", expand its existing sales of products in overseas markets and enhance its international influence.
The completion of this transaction would enable Eurocrane to achieve strategic expansion in the European markets and acquire high-value brands, technologies and teams. After M&A, both sides can complement each other in multiple aspects, such as technology, market, capital and talent and create synergetic value, which is expected to significantly enhance Eurocrane`s development momentum and return on assets. On the other hand, as a leader of China`s European crane industry, Eurocrane will continue to benefit from the opportunity brought by [OBOR". It is predictable that the influence on overseas markets will be enhanced constantly.
