Sumitomo Heavy Industries Acquires Lafert Group, Gains Advantage with Electric Motors
Sumitomo Heavy Industries Ltd. announced the acquisition of Lafert Group, European leader in the design and production of electric motors and drivers customized for industrial use. Lafert, headquartered in San Donà, Italy, closed 2017 with a turnover of 150 million Euro, over 9 percent more than 2016 and an EBITDA margin above 10 percent; revenues of the first quarter 2018 were 17 percent above previous year.
The value of the transaction, which will be finalized after closing activities and the approval of the Antitrust Authority, is equal to an equity value of EUR 172.65 million. Following the acquisition, Lafert will be part of Power Transmission and Controls division of Sumitomo Heavy Industries, which is known as the brand Sumitomo Drive Technologies. In 2017, Power Transmission and Controls business segment closed with almost 1 billion Euro sales and an operating income margin above 10 percent.
The current top management of Lafert will continue to be engaged in the company activities to pursue the growth plan of Lafert and assure the best integration possible. All Lafert facilities and staff, in Italy and abroad, will be maintained and enhanced, supported by a strong development strategy.
The acquisition of Lafert is a milestone in Sumitomo Heavy Industries’ expansion strategy in the electric motors and industrial machines electrification space. Lafert will be the global Competence Center for the research and development of all motors under the Sumitomo Drive Technologies banner and will also be the point of reference for the market development in the future.
Lafert will lead on a global scale sales, marketing, R&D and engineering activities as to motors manufactured in its production facilities, in Italy, Slovenia and China.
The total value of the production of electric motors of Sumitomo Drive Technologies after the acquisition of Lafert will amount to 250 million Euro, of which 24 percent brushless servomotors and torque motors, 12 percent permanent magnet synchronous motors and 64 percent asynchronous motors. The target is to increase to 400 million Euro by 2025, also thanks to an ambitious plan of investments and organization strengthening.
Following the acquisition of Lafert, the EMEIA (Europe, Middle East, India and Africa) sales of Sumitomo Drive Technologies will consist in 49 percent electric motors, 6 percent geared motors, 19 percent precision gears, 18 percent gearboxes and 8 percent services.
With this deal, Lafert will be able to expand its product portfolio with the wide range of industrial and precision gears, as well as higher frame sizes (180-250) asynchronous motors produced by Sumitomo Heavy Industries.
Many business opportunities can be developed thanks to the fact that there is no overlap between the two product portfolios. The main target markets are industrial automation, HVAC/R applications, air technologies, material handling and robotics, textile machineries, food & beverage.