Omaha Standard has entered into an agreement to be acquired by Palfinger, an Austrian-based company.
Palfinger is one of the world’s leading manufacturers of hydraulic lifting, loading, and handling systems that are installed on commercial trucks. The multinational group headquartered in Salzburg, Austria, has over 5,000 employees and generated sales of approximately $1 billion in 2007.
Palfinger has production and assembly facilities in Europe, North and South America, and in Asia. The pillars of the company’s strategy are innovation and the diversification and internationalism of products and services.
Palfinger is regarded as a market leader and technology leader in the global market for hydraulic knuckle-boom cranes. The corporation is in close proximity to its customers with over 3,200 sales and service centers located in more than 130 countries across five continents.
In North America, Palfinger currently has facilities in Canada in Niagara Falls, ON, and in the United States in Tiffin, OH, and Cerritos, CA.
The existing management team and all Omaha Standard personnel will remain in place. Tom and Jim Moser will retain their positions as co-presidents and support the integration into Palfinger North America.
“In Palfinger, we believe we have found the perfect partner for Omaha Standard in terms of complementary products, financial strength, customer focus, and for our employees,” the Mosers said. “The Palfinger family and Palfinger company share the same values as the Moser family and Omaha Standard—to provide high quality products which meet and exceed the expectations of our customers, to treat our employees with the dignity and respect they deserve, and to be good corporate citizens. We are very excited and optimistic about the future of Omaha Standard and our people as a result of becoming part of the Palfinger group.
“A large, important component of our future growth and success will continue to be our distributors.”
Omaha Standard is a family-run business with a long tradition of producing and selling a wide range of truck bodies, especially for the domestic market. The two main products are service bodies and pick-up tail lifts, placing Omaha Standard among the top three players on the US market.
Omaha Standard has a state-of-the-art manufacturing and assembly plant with a KTL painting facility in Council Bluffs, Iowa, in addition to nine body workshops and/or dealers in the US. Its products are sold and serviced via a distribution network of approximately 400 centers.
“In the past few years Omaha Standard, has heavily invested in the expansion of its production site, which boasts a high-tech plant and efficient production processes. Its standards are truly on a par with those of Palfinger in every respect,” said designated Palfinger CFO Christoph Kaml, who has been the project leader in his capacity as managing director of Palfinger North America area.
"The ongoing financial and economic crisis in North America has prevented necessary capacity utilization from being achieved thus far. For this reason both companies stand to profit from this acquisition. Omaha Standard ideally complements the previous operations of Palfinger in this market – in terms of both product portfolio and production and distribution capacities. As a result, new distribution channels are now available to Omaha Standard, and there is of course more potential for utilization of capacities.”
With a workforce of 450, the company generates annual revenues of approximately $79 million. The North American share in the total revenues generated by the Palfinger Group will be doubled by Omaha Standard and for the first time exceed the 10% mark. The manufacturing site and the U.S.-specific product series will further support Palfinger’s future growth in this market. Thanks to local purchasing, manufacturing, and assembly, Palfinger will intensify its value creation in the U.S., thereby further increasing natural hedging.
Said Palfinger CEO Herbert Ortner, “The current situation in North America provides us with the opportunity to expand our business in this exciting market by actively participating in the consolidation of the market. With Omaha Standard we have established a sound platform for achieving future growth in the North America area and increasing local value creation.”