The Palfinger Group continues its growth strategy and is acquiring an 80-percent stake in ETI (Equipment Technology, LLC). The US company headquartered in Oklahoma primarily produces and distributes aerial lifts. With a staff of around 190, ETI generated revenues of approximately $45 million in 2009.
ETI has a long history as a manufacturer and customer service solution provider and initially focused its operations in the Southwest US. Its continuous growth was also supported by the acquisition of a majority interest in the service crane manufacturer Ideal Crane in 2007.
The aerial lift business accounts for the majority of the revenues generated by the company, which also manufactures service cranes. The products are distributed via direct sales forces and supported by a nationwide network of independent service outlets and ETI field service employees.
Up to now the majority share of ETI was family-owned. After the investment by Palfinger, which will acquire a majority stakeholding, the existing owners will continue to run the company and ETI will have the status of a largely independent business unit within the Palfinger area North America. The owners were looking for a strategic investor to support ETI’s further organic growth and found such a partner in Palfinger.
“We have known ETI for a long time and are excited that the company is becoming part of the Palfinger Group. ETI allows us to realise our strategy of becoming a truly local player in one of our strategic core business segments,” says Herbert Ortner, CEO of Palfinger AG.
This enables the Palfinger Group, which had not been present in the North American market with aerial lifts before, to enter this segment with local products. The strategic partnership opens up significant synergies with the existing US business.
As a result of this cooperation, the consolidated revenues of the Palfinger Group will increase by around 6 percent and the share in revenues contributed by North America will rise from previously 12 percent to around 18 percent.