Sumitomo Heavy Industries Ltd acquires Lafert Group
Sumitomo Heavy Industries Ltd and it´s division Power Transmission and control announces the acquisition of Lafert Group, European leader in the design and production of electric motors and drivers customized for industrial use. Lafert closed 2017 with a turnover of 150 million Euro, over 9% more than 2016 and an EBITDA margin above 10%; revenues of the first quarter 2018 were 17% above previous year.
The transaction
The value of the transaction, which will be finalized after closing activities and the approval of the Antitrust Authority, is equal to an equity value of EUR 172.65 million. Following the acquisition, Lafert will be part of Power Transmission and Controls division of Sumitomo Heavy Industries, which is known as the brand Sumitomo Drive Technologies, the market leader in Japan. In 2017, Power Transmission and Controls business segment closed with almost 1 billion Euro sales and an operating income margin above 10%.
The current top management will continue to be engaged in the company activities to pursue the growth plan of Lafert and assure the best integration possible. All Lafert facilities and staff, in Italy and abroad, will be maintained and enhanced, supported by a strong development strategy.
Lafert future development
The acquisition of Lafert is a milestone in Sumitomo Heavy Industries’ expansion strategy in the electric motors and industrial machines electrification space. Lafert will be the global Competence Center for the research and development of all motors under the Sumitomo Drive Technologies banner and will also be the point of reference for the market development in the future.
Lafert will lead on a global scale sales, marketing, R&D and engineering activities as to motors manufactured in its production facilities, in Italy, Slovenia and China.
The robust financials of Sumitomo Heavy Industries will support Lafert growth strategy and will facilitate the company in consolidating its leading position in the electric motors market. Both Sumitomo Heavy Industries and Lafert will mutually benefit from accessing new markets.
Growth and business areas
The total value of the production of electric motors of Sumitomo Drive Technologies after the acquisition of Lafert will amount to 250 million Euro, of which 24% brushless servomotors and torque motors, 12% permanent magnet synchronous motors and 64% asynchronous motors. The target is to increase to 400 million Euro by 2025, also thanks to an ambitious plan of investments and organisation strengthening.
Following the acquisition of Lafert, the EMEIA (Europe, Middle East, India and Africa) sales of Sumitomo Drive Technologies will consist in 49% electric motors, 6% geared motors, 19% precision gears, 18% gearboxes and 8% services.
With this deal, Lafert will be able to expand its product portfolio with the wide range of industrial and precision gears, as well as higher frame sizes (180-250) asynchronous motors produced by Sumitomo Heavy Industries.
Many business opportunities can be developed thanks to the fact that there is no overlap between the two product portfolios. The main target markets are industrial automation, material handling, HVAC/R applications, energy and food & beverage.
About Lafert Group:
Lafert Group is the European leader in the design and production of electric motors and drives customized for industrial use. Founded in 1962 in San Donà di Piave, in the province of Venice, it has grown organically over the years to bring its revenues from 80 million in 2010 to 150 million euros in 2017. Lafert employs 840 employees (630 in the province of Venice, between San Donà di Piave and Noventa di Piave, the remaining between Fusignano, Bologna, Slovenia, China and commercial offices) and 73% of revenues come from exports.
The Group is strongly oriented towards technological innovation, energy saving and product customization, aiming to improve performance and reduce environmental impact. Over the years, Lafert Group has positioned itself as a world leader in the segment of engines in the Super Premium performance class (IE4, IE5).
About Sumitomo Heavy Industries Ltd.:
Sumitomo Heavy Industries is one of the 33 companies of the Sumitomo Group, founded by Masatomo Sumitomo about 400 years ago in Japan. In 2017, Sumitomo Heavy Industries closed with a record high of over 6 billion Euro in both order-receiving and sales and an operating income margin of 8.8%.
Sumitomo Heavy Industries operates in the engineering sector and is a highly innovative company that designs, manufactures and distributes a wide range of products, such as mechanical components as Power Transmission and Controls products, precision machines such as plastic injection molding machines and cancer treatment machines, industrial machinery, construction machinery, ships and environmental facilities. More information is available on the company’s website http://www.shi.co.jp/english/index.html
About Sumitomo (SHI) Cyclo Drive Germany GmbH:
Sumitomo (SHI) Cyclo Drive Germany is a subsidiary of Sumitomo Heavy Industries within the Power Transmission Control business segment. Under the umbrella brand of SUMITOMO DRIVE TECHNOLOGIES, Sumitomo Heavy Industries is the market leader for drive technology in Japan and continues to expand its global presence and market share. In 2017 Sumitomo Heavy Industries closed with a record high of over 6 billion Euro. Thus, Sumitomo (SHI) Cyclo Drive Germany GmbH has sales, service and production facilities in many European countries and, in addition to Hansen Industrial Transmissions in Belgium, further subsidiaries in France, Italy, Spain, Great Britain, Turkey and India.