Agreed value of the transaction is a gross base price of EUR 5.8 million including net cash, payable at closing, and an earn-out over the next three years if specific targets are met. The transaction is expected to be completed within mid-February 2017.
In accordance with the company’s bank loan agreements 50% of the proceeds from the sale of TTS Liftec Oy will be applied as down-payment on existing term loans.
TTS Liftec Oy designs and delivers horizontal transportation systems for heavy cargo units globally, along with services, spare parts, customer support and after sales activities with life cycle perspective. Revenues in 2016 was EUR 12 million, with an EBITDA of EUR 0.9 million.
“We believe this agreement is an excellent industrial solution for all parties. TTS Liftec Oy will join the Novatech group as a core business unit where efficiency and synergies has a more obvious potential than we can see for this unit within the TTS Group”, said CEO of TTS Group ASA, Toril Eidesvik. “Not at least this agreement gives us an opportunity to focus even stronger on our core strategy.”
“The acquisition of TTS Liftec Oy is a good strategic match for us”, said Erik Knudsen owner and founder of Novatech Aps. He is very excited with the possibility this gives the combined entities to further develop its businesses.
TTS Liftec Oy was established in 1991 and is located in Pirkkala, Finland. The company has been a part of TTS Group since 2004. The number of employees is approximately 30.
Novatech ApS was founded in 1996 and are specialists in designing and manufacturing custom made heavy moving transportation for the shipping industry, and also supply products within the agricultural sector. Novatech ApS has its activities in Denmark and Poland and employ around 250 people.