The company, which generated revenue of USD 9.7 million in 2006, specializes in the design and manufacture of crane runway products. It was acquired by Cavotec in November 2002.
Under the terms of the agreement, Gantry will take ownership of the Gantrex operations effective January 1st, 2008.
Cavotec MSL and Gantry will reverse the historical cross minority ownerships of certain operations in Asia, and Cavotec MSL will retain its exclusive right to act as distributor for Gantrex products in South Africa and Australasia.
Cavotec MSL also advises that net proceeds from this sale will further assist the company as it continues to identify acquisition candidates and explore potential transactions.
“The sale of Gantrex will free up financial and managerial resources inside of Cavotec to further develop our core business while, within the Gantry Group, Gantrex’s people and products will receive increased attention and support. Basically, everybody wins,” said Ottonel Popesco, Cavotec MSL’s Chief Executive Officer. “Additionally, we are in ongoing discussions with potential acquisition targets both in the United States and Europe. There are great companies out there operating in our core markets whose technologies would complement our existing innovations very well. We are committed to growing the Group both organically and from acquisitions.”
Gantry Group’s chief executive officer Didier Haegelsteen commented: “We are very pleased to acquire the Gantrex operations in the Americas, thus giving us the opportunity to provide a better and more efficient service to our Gantrex customers worldwide. This agreement with our long-term partner, Cavotec, will provide both organizations with a good platform to strengthen their respective core business in this part of the world.”
Cavotec Micro-control’s order intake increased 56% in the January to June 2007, the company reports. It expects total 2007 revenues to grow beyond EUR130m.
