The Palfinger Group, Salzburg, Austria, announced its acquisition of an 80-percent stake in Equipment Technology, LLC (ETI), Oklahoma City, Okla. The U.S. company primarily produces and distributes aerial lifts. With a staff of about 190, ETI generated revenues of approximately $45 million in 2009, making it one of the top players in the field of aerial lifts in the North American market. ETI has a long history as a manufacturer and customer service solution provider and initially focused its operations on the southwestern U.S. The company’s growth has been supported by the 2007 acquisition of a majority interest in service crane manufacturer Ideal Crane. The aerial lift business accounts for the majority of the revenues generated by ETI, which also manufactures service cranes. The products are distributed via direct sales and supported by a nationwide network of independent service outlets and ETI field service employees.
Up to now, ETI was majority family-owned. After the investment by Palfinger, who will acquire a majority stakehold, the existing owners, who were looking for a strategic investor to support ETI’s further organic growth, will continue to run the company. ETI will have the status of a largely independent business unit within the Palfinger North America area.
“We have known ETI for a long time and are excited that the company is becoming part of the Palfinger Group,” says Herbert Ortner, CEO of Palfinger AG. “ETI allows us to realize our strategy of becoming a truly local player in one of our strategic core business segments.”
This is a major strategic step for Palfinger, and enables the Group, which had not been present in the North American market with aerial lifts before, to enter this segment with local products. The strategic partnership opens up significant synergies with the existing U.S. business. As a result of this cooperation, the consolidated revenues of the PALFINGER Group will increase by about 6 percent, and the share in revenues contributed by North America will rise from previously 12 percent to around 18 percent.
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