Avanti Wind Systems A/S provides vertical access solutions for wind turbine towers. The acquisition broadens and diversifies Alimak Group’s product portfolio and offers an expansion into a growing area of renewable energy. The enterprise value is 91 MEUR which corresponds to a normalized EV/EBIT of 9.5x (2016 pro forma level). The acquisition will be financed through a bridge loan intended to be repaid by proceeds from a proposed rights issue of new shares with preferential rights for existing shareholders in Alimak Group AB of up to 800 MSEK.

Avanti offers vertical access solutions to the wind industry that are permanently installed, have a long lifecycle and are based on high safety requirements. Avanti was established in 1885 and has more than 30,000 service lifts installed globally. In 2016, Avanti’s net sales is expected to be

98 MEUR and it operates globally with six production facilities in Denmark, Spain, China, US and Brazil.

“The demand for service lifts for wind turbine towers is expected to grow the coming years due to increased heights of the towers and increased safety requirements. The acquisition expands and diversifies our offering of vertical access solutions for industrial customers globally, enables cross selling opportunities and adds an opportunity to expand after sales well in line with Alimak´s strategy and business model,” says Tormod Gunleiksrud, CEO of Alimak Group. 

“Becoming part of Alimak Group enables Avanti to continue its development of best in class safety products and solutions to the benefit of our customers within the wind industry. I see this acquisition as the perfect strategic fit for Avanti, and we look forward to becoming part of the global leader in vertical access systems” says Erik Laursen, CEO of Avanti Group. 

Through the acquisition, Alimak Group takes another step forward in the global vertical access industry and the annual group net sales will increase from approximately 3,200 MSEK to 4,200 MSEK, while the number of employees will rise from 1,900 to 2,300. The globally installed base will increase from around 36,000 to 66,000 units.

The acquisition is subject to customary regulatory approvals and is expected to close in the first quarter of 2017. Synergies will primarily be found in the supply chain, through cross-selling and in expansion of the aftersales offering. The acquisition is expected to be EPS accretive and contribute positively to cash flow. Integration costs are estimated to approximately 43 MSEK.

The acquisition will be financed through a bridge loan arranged by Alimak Group´s existing banks. Upon completion of the acquisition, Alimak Group will have a capital structure with an expected leverage (net debt/EBITDA) of around 3.7x, which exceeds the targeted leverage of 2.0x.

Tags: Alimak Group, Avanti Wind Systems A/S