Acquisition of Hyva Holding
NWS Holdings Limited ("NWS Holdings"; Hong Kong stock code: 659) has joined hands with Unitas Capital Pte Ltd ("Unitas Capital"), a leading regional private equity fund, through their 50-50 joint venture Senglea Holding B.V. ("Senglea Holding"), to acquire the entire issued share capital of Hyva Holding B.V. ("Hyva Holding"). The amount of the consideration payable by Senglea Holding is based on an enterprise value of EUR525 million (equivalent to approximately HK$5.4 billion). The Group has committed to make an equity contribution in the total amount of up to EUR134.9 million (equivalent to approximately HK$1.4 billion).
Upon completion of the transaction, each of NWS Holdings and the funds managed by Unitas Capital is expected to indirectly hold approximately 35% interest in Hyva Holding while the remaining 30% stake will be held by individuals of its senior management team. The transaction is expected to complete in the first half of 2011.
Headquartered in the Netherlands, Hyva Holding is engaged in the development, production, marketing and distribution of components used in hydraulic loading and unloading systems on trucks and trailers. Its products are used worldwide across a range of sectors including transport, construction, mining, materials handling and environmental services providers.
Founded in 1979, Hyva Holding has developed through international expansion from a Dutch business into a global business that today derives more than 70% of sales from emerging economies such as China, India and Brazil. The company has exhibited strong growth rates since its foundation. It achieved 20% sales CAGR between 2001 and 2008. Hyva Holding is expected to generate annual revenues of approximately EUR 490 million (equivalent to approximately HK$5.1 billion) in 2010.
NWS Holdings considers that the acquisition to be a favourable strategic investment opportunity in view of the international operations of Hyva Holding, its strong branding and distribution network. With a solid profit track record, the investment in Hyva Holding will bring instant profit contribution to NWS Holdings and further boost its growth prospects.