The Canadian affiliate of Luxembourg’s SAF-Holland Group SA has sold its agricultural equipment business, AerWay, to Salford Group Inc, a Canadian manufacturer and marketer of farming machinery. No financial terms were released for the deal, which closed earlier this month. SAF-Holland said the soil loosening and cultivation equipment in the AerWay product line did not represent a core activity to its commercial vehicle supply business. Based in Salford, Ontario, Salford is a portfolio company of U.S. private equity firm GenNx360 Capital Partners. In May, the company acquired Valmar Airflo Inc.
SAF-HOLLAND sells AerWay product line
Luxembourg, December 11, 2015 +++ The SAF-HOLLAND Group, Luxembourg, is divesting its Canadian non-core activities in agricultural equipment through the sale of its AerWay product line.
The commercial vehicle supplier SAF-HOLLAND is following through with the planned divestment of soil loosening and cultivation equipment by selling the AerWay product line to the Canadian company Salford Inc., a specialist in soil tillage machinery headquartered in Salford, Ontario.
This product line has been a peripheral activity since the merger of SAF, Germany, and Holland, USA, in 2007 and does not represent a core business of the SAF-HOLLAND Group, which provides axles and suspension systems for trailers, buses, and trucks in addition to fifth wheels, kingpins, and landing gear. In fiscal year 2014, the AerWay product line generated sales in the mid single-digit millions making only a minor contribution to Group sales of EUR 959.7 million. The product line had 38 employees working at SAF HOLLAND’s Canadian subsidiary, SAF-HOLLAND Canada Limited, in Norwich, Canada, and operated within the Trailer Systems business unit.
Both parties agreed not to disclose details of the purchase price said to be in the low single-digit million EUR amount, and there were no objections raised by antitrust authorities. The transaction was closed on December 11, 2015.
SAF-HOLLAND S.A., located in Luxembourg, is the largest listed supplier to the commercial vehicle market in Europe. With sales of approximately EUR 960 million in 2014 and more than 3,000 employees, the company is one of the world’s leading manufacturers and suppliers of chassis-related systems and components primarily for trailers, trucks, buses, and recreational vehicles. The product range comprises axle and suspension systems, fifth wheels, kingpins, and landing gear and is marketed under the brands SAF, HOLLAND, and Neway. SAF-HOLLAND sells its products to Original Equipment Manufacturers (OEMs) on six continents. The Aftermarket Business Unit sells spare parts to the Original Equipment Service (OES) of the manufacturers and to end customers and service centers through its own extensive global service and distribution network. SAF-HOLLAND is one of the few suppliers in the truck and trailer industry that is internationally positioned in almost all markets worldwide.
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Photo courtesy of Salford Group Inc