Bolzoni becomes leader in German market

News Story
- 12 Oct 2006 ( #281 ) - PIACENZA, Italy
3 min read
Bolzoni Group chairman Emilio Bolzoni
Bolzoni Group chairman Emilio Bolzoni
Bolzoni SpA says its turnover for fiscal year 2006 will jump 30 per cent after the acquisition of German forklift attachment maker Hans H Meyer GmbH.

The acquisition was announced this month but Bolzoni hinted at the purchase when it said it was entering the forks market through a "possible" acquisition in an initial-public-offering prospectus (Forkliftaction.com News #279). Bolzoni listed on the Italian Stock Exchange, in Milan, on June 8.

Group chairman Emilio Bolzoni said the company was satisfied with the acquisition.

"It enables us to consolidate our leadership in Europe and increase market share worldwide ... Thanks to Meyer's entry into our group, we have become leaders in Germany, the most important European market."

The inclusion of Meyer's operations in the Bolzoni Group would result in Bolzoni's market share in Europe growing from 30.4 per cent to 40 per cent, making it Europe's leading forklift attachment maker, a Bolzoni statement said.

Bolzoni had a consolidated turnover of EUR50.8 million (USD63.7 million) for the first half of 2006. Its consolidated financial report for the year ending December 31, 2006, will include results of the Meyer Group from November 1, 2006.

"Following the take-over, the Bolzoni Group will boost turnover by 30 per cent bringing pro-forma consolidated net sales to EUR130 million (USD163.1 million) for fiscal 2006," the statement said.

The proceeds from Bolzoni's initial public offering will pay for the acquisition, which ranges in price from EUR7 million to EUR9.5 million (USD8.8 million to USD11.9 million). The price depends on Meyer's earnings before interest, taxes, depreciation and amortisation (EBITDA) for the 2006 financial year.

Bolzoni's competitors in Germany are Cascade, of Oregon, US, and Kaup, of Aschaffenburg, Germany. Cascade Corp corporate communications manager Madalyn Piar-Katter said Cascade's market share in Europe was 28 per cent and globally 55 per cent. Net sales for New York Stock Exchange-listed Cascade for the year ended January 31, 2006, were USD450.5 million and net income was USD42 million. Net sales for the six months ended July 31, 2006, were USD237.2 million. Cascade Corp employed 1,900 people.

In contrast, the Bolzoni Group, which employed 550 people at its 16 companies and 10 subsidiaries, had a net income of EUR96 million (USD120.5 million) for fiscal 2005. It had a consolidated turnover of EUR50.8 million (USD63.7 million) for the first half of 2006. Bolzoni has six plants in Italy, the USA, Finland, Estonia, Spain and China.

Meyer Group has its headquarters and production site at Salzgitter, near Hannover, Germany. It employs 220 people and has three subsidiaries in France, the UK and Sweden. Meyer had a turnover of EUR26.7 million (USD33.5 million) for fiscal 2005, up 11.3 per cent from 2004, an EBITDA of EUR1.6 million (USD2.0 million) and a negative net financial position of about EUR4 million (USD5.0 million). The group was founded by Hans Meyer in 1953.

Meyer chairman Hans Meyer said Bolzoni and Meyer complemented well.

"This opens a new chapter in the history of our firm," he said.

The Meyer website posted a statement to inform stakeholders of the change.
"For personal reasons there has not been a member of the Meyer family [able] to take the position of managing director. Therefore the family has decided to take another path.

"We are delighted, therefore, to be able to share with you the news that Meyer will be a part of the successful Bolzoni Auramo Group with immediate effect."

Meyer attachments would continue to be produced in Salzgitter and the Meyer name and products would continue "as an independent company complementing Bolzoni", the statement said.
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