Sweden’s TTS Ships Equipment AB, Gothenburg, part of Norway’s TTS Marine ASA, has signed an agreement to purchase Finland’s Liftec Products Oy, Tammerfors. The company will be renamed TTS Liftec Products Oy
Sweden’s TTS Ships Equipment AB, Gothenburg, part of Norway’s TTS Marine ASA, has signed an agreement to purchase Finland’s Liftec Products Oy, Tammerfors. The company will be renamed TTS Liftec Products Oy.
“Liftec Products’ designs and delivers systems for loading and unloading ships in port, an area in which TTS is expanding, and together with other TTS activities in mobile terminal systems, this business area is expected to pass NOK100m in 2005” says TTS Marine’s CEO Johannes D Neteland.
Liftec Products started in 1991 and today has 18 employees located at the plant in Tammerfors. Jorma Makinen, who founded the company, will continue in his present position for a minimum of three (3) years. TTS paid Euro4m for Liftec Products - Euro3.5m in cash and Euro0.5m in TTS stocks. The total amount may increase by approximately Euro2m, depending upon company after tax results exceeding Euro0.6m in the coming three years. The acquisition was financed partly by TTS’ own capital and partly with loans. The acquisition contract will enter into force on December 31st 2004 followed by a period of due diligence until Feb 18th.
Good profit
“With this acquisition, TTS will get access to an established product and marketing concept in a business area which has had good profit over many years”. adds Mr Neteland. Accounts for Liftec Products in Fiscal Year 2004 (Oct 1st 2003 – Sept 30th 2004) show a turnover of Euro7.0m, a operating result of Euro1.1m, a pre-tax result of Euro1.0m, and an after tax result of Euro0.7m.
Liftec Products portfolio includes systems for container and cargo cassette handling, the majority of which have been so far sold to European ports and harbours. The company also has extensive service and after-sales capabilities, which will also be taken over by TTS.
Strategic importance
During recent years, TTS has co-operated with Liftec in the development of robotic systems, especially the Automatic-Guided Vehicle (AGV). Meanwhile, TTS has received contracts worth NOK19m (during the last quarter of 2004) for land-based cargo-handling systems, including mooring systems and shoreside linkspans. Further development of terminal systems will use the existing divisions within the group in a field, which is of special interest in the development of the company as a whole. “For this reason, investing in Liftec Products is very important for the total development of the Group”. Comments Mr Neteland.
Very good year for TTS
“TTS has had a very good year throughout 2004 – Earlier this autumn TTS acquired ownership of the German crane specialist Lubecker Maschinenbau Gesellschaft GmbH (LMG) and, also in 2004, TTS purchased an additional 50% of the stocks of TTS Hydralift Co Ltd, Shanghai, which is now a 100% owned business. With the acquisition of Liftec Products Oy, TTS Group has increased it’s international position further. Both with our own strategic development and our result development, and the further development for our stock owners, 2004 has been a very good year”. Says Mr Neteland.
TTS Marine ASA is an international company with 370 employees – mainly design engineers. The Group has three divisions – Dry Cargo Handling (Sweden), Marine Cranes (Norway) and Materials Handling (Norway), some of which are market leaders. TTS has design offices in Norway, Sweden, Germany, Finland, Poland, United States and China, and a sales office in South Korea.
TTS Marine ASA is headquartered in Bergen (Norway) and is quoted on the Olso Bors.
Bergen, 23 December, 2004
Contact persons: Johannes D. Neteland President and CEO TTS Marine ASA
Olav Bruåsdal Director TTS Marine ASA
Phone: 55 94 74 00 / Fax: 55 94 74 01