Alimak's owner acquires HEK

The Swedish investment company Atle AB, which already owns the construction hoist manufacturer Alimak, has announced the acquisition of work platform manufacturer Hek International Group BV of the Netherlands from ThyssenKrupp.

Atle Industri's deputy chief executive Hans Werner said that the acquisition was in line with Atle's overall strategy and expansion plans for the Alimak group. Alimak and Hek will remain separate and independent entities, brought together as equal partners under a new parent company based in Stockholm. The utlimate aim is to grow the group, by further acquisition as well as organically, and then float it on the stock exchange.

Alimak and Hek will maintain their respective identities and continue production and supply of equipment, parts and support to all their customers. According to Werner, the synergy between the companies will enable cooperation in research and development, yielding economic benefits when sourcing components and materials, thereby increasing the competitiveness of both companies.

The new group will be the world's largest source of rack and pinion access equipment for construction, industrial and other applications. Atle does not rule out further acquisitions that could provide a natural extension of the existing product ranges.

"It is our objective to prepare the new company for public listing within a few years," said Werner. "To do this we have to develop the company both through organic growth and acquisitions. To reach our objectives, we will, as and when appropriate, look to acquire companies, large and small, that strengthen the new company's position as a total supplier in vertical access" Krister Kempainen, managing director of Alimak, and Ernst Van Hek, managing director of Hek International Group will be members of the management team of the new parent company.

Market-leading Alimak manufactures and markets rack and pinion driven hoists, lifts and platforms.It is headquartered in Skellefteå, Sweden and has 12 wholly owned subsidiaries and some 50 distributors worldwide. Sales in 2000 are expected to generate close to SEK700m ($70m).

Hek is a world leader in work platforms with extensive rental operations, and is also a producer of construction hoists. Hek's head office is in Middelsbeer, the Netherlands and distribution is through four wholly owned subsidiaries and an extensive global dealer network. Sales during the current year will amount to around SEK400m ($40m).

Atle is a private equity player that invests in unlisted companies, grows them and then gets out. Since its inception in 1992, Atle has invested in about 200 businesses and exited from more than 100. Its annual return from these exits is approximately 50%. Group earnings have risen from SEK373m in 1993 to SEK1,025m in 1999.

Atle is quoted on the Stockholm Stock Exchange's A List and has approximately 17,000 shareholders.