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Schaeffler acquires Eville, Strengthens industrial business

From:SINO BEARINGS2022-09-30
Eville's product portfolio includes a wide range of high-performance electromechanical actuators for a variety of designs and installations for both general and specific industrial applications.
Innovative and leading linear technology products greatly augment Schaeffler Industries' existing product portfolio
The high growth of this business is driven by the booming fields of mechatronics, efficiency optimization, automation and robotics
Both teams have rich experience and highly compatible cultures, which will bring good integration
Synergies are evident, especially in the area of product sales
In a complex and volatile market environment, the Schaeffler Group's strong balance sheet and liquidity position will lay a solid foundation for a continuous M&A strategy
On July 24, 2022, Schaeffler Group, a global supplier of automotive and industrial products, entered into an agreement with Triton Fund V to acquire Ewellix, a subsidiary of Triton Fund V. The acquisition will further strengthen Schaeffler Group's market position in the straight-motion business. The transaction remains subject to regulatory approvals and fulfillment of relevant closing conditions.
Linear motion technology is seen as a huge driver for the continued growth of the global industrial technology sector in the future, focusing on high-growth sectors such as industrial automation, robotics, medical technology, food and beverage, and mobile machinery industries.
Klaus Rosenfeld, Chief Executive Officer of Schaeffler Group, said: "The acquisition of the Eville Group will further strengthen our industrial business and we will continue to advance our strategy in a complex and changing market environment. This acquisition is an important step forward in diversifying Schaeffler's business as a global supplier of automotive and industrial products, and will further enhance our ability to enter markets with growth potential. This is another important step for the Schaeffler Group to prepare for the future."
Schaeffler was the ideal buyer for Eville
Eville is a global manufacturer of components and systems for linear motion. Headquartered in Gothenburg, Sweden, Eville is a market leader in a wide range of technology areas, including mechatronics actuators, lifting columns and lead screws. These products are widely used in robotics, medical and mobile machinery industries. The Eville product range is a strong addition to the existing portfolio of Schaeffler's Industrial Division. Evey lai in the United States, Europe and Asia has six production and customized business points, in 16 sales offices in 15 countries, has about 550 sales partners, including sales and r&d has about 1200 employees, it will form a strong business unit, work closely with schaeffler industrial group, achieve synergies.
Dr. Stefan Spindler, President of Schaeffler Industrials, said, "With the acquisition of the Eville Group, we are significantly expanding Industrials' presence in linear technologies, especially in areas of strategic importance for the future. I know Eville pretty well. Eville has a strong business operation, with solid product development capabilities, a focus on customers and product sales, and highly innovative solutions and customer projects. We will support Eville's team in executing its ambitious business growth plan. We should give full play to the synergies and gradually deepen the cooperation to further develop the manufacturing system through its production units."
Trends in mechatronics, efficiency optimization, automation and robotics
The acquisition of the Eville Group represents a significant expansion of the Schaeffler Group's linear technology product matrix, able to tailor products more closely to customer needs, and more focused than before on the three core trends of the industrial business. One is the tendency to replace or complement hydraulic and pneumatic solutions with electromechanical systems. The second is the pursuit of optimal efficiency. The third is the trend of automation and robotics. With a range of modular actuator technologies, Eville is able to quickly and cost-effectively build customized, application-specific solutions. By combining this line of products with Schaeffler's own products, Schaeffler will unlock additional customized solutions based on intelligent design principles.
Schaeffler Group's strong balance sheet and liquidity position
Over the past few years, the Schaeffler Group has built a strong balance sheet and liquidity position, which provides a good foundation for successful acquisitions. "Our robust balance sheet and liquidity position, in large part due to years of rigorous cost and capital discipline, has meant that we have been able to pursue and leverage strategies to create opportunities even in challenging environments." Mr. Klaus Bauer, Chief Financial Officer of Schaeffler Group.
The purchase will be in the form of a stock transaction, the purchase price is about 582 million euros. That figure does not include Eville's €120m net debt, borne by Schaeffler, nor does it include transaction costs. The purchase price will be paid by existing sources of internal and external financing. The deal is expected to bring Schaeffler Group's earnings per share into the mid-range as early as 2024.