News

Knorr-Bremse Announces All-Cash Offer to Acquire Haldex

Issued at 2016-09-10



Planned combination of Haldex and Knorr-Bremse creates a technology leading systems supplier to the global commercial vehicle industry and unlocks attractive opportunities for both companies

Knorr-Bremse AG earlier today submitted an all-cash offer for Swedish Haldex Aktiebolag (“Haldex”), valuing the company at SEK 4.86 billion. Haldex is one of the leading suppliers of brake and air suspension systems for the commercial vehicle industry with a focus on trailer applications. The company is listed on the Stockholm stock exchange (NASDAQ).

The all-cash offer of SEK 110.00 per Haldex share represents a highly compelling premium of 47.9 percent to the 3-month volume-weighted average price as quoted by Nasdaq Stockholm on July 13, 2016, the day before a first public tender offer for the company was announced, and a significant premium of 29.0 percent compared to the closing price of the Haldex share on the same day.

The combination of Haldex and Knorr-Bremse will create one of the leading systems suppliers with a clear focus on the commercial vehicle business and attractive growth opportunities for both companies. Haldex’s globally renowned expertise in brake and air suspension components for the trailer segment ideally complements the Knorr-Bremse product portfolio, which comprises not only braking, steering and powertrain systems, but also driver assistance systems, automated driving functions and telematics.

“Both our companies share a deep-rooted tradition in the commercial vehicle industry with innovation at the heart, making this a very natural combination. We would bring in our strong expertise in the truck market, global technological leadership, and the long-term perspective of a family-owned business. Haldex has an impressive position in the trailer market as well as a strong product portfolio and will play a key role in our company,” says Klaus Deller, Chairman of the Executive Board of Knorr-Bremse AG. “We aim at creating a world class systems supplier for commercial vehicles serving our customers as a single source for an even wider range of innovative systems, connected solutions and customized services. In addition, we will play a driving force in our industry as it transforms towards autonomous driving. A combination unlocks significant growth potential for both companies for the benefit of customers, business partners and employees.”

Knorr-Bremse’s long-term profitable sales growth is based on technological leadership driven by above-average R&D investments. This commercial vehicle focused R&D approach, which is supported by Knorr-Bremse’s solid financial position, will play a key part in further developing Haldex as an integral part of Knorr-Bremse’s commercial vehicle business. Due to Haldex’s established track record in the trailer market it would be an obvious solution to use the Haldex brand as the overall group brand for the combined trailer business and to make Haldex a Center of Excellence for trailers. The company would thus be a driving force for the further development of Knorr-Bremse group.

Both groups have a largely complementary product portfolio which would allow them to jointly offer complete wheelends consisting of foundation drum brakes, slack adjusters, air disc brakes and brake actuators for worldwide applications. Additionally, Knorr-Bremse will contribute a comprehensive product range of advanced electronic chassis control, vehicle dynamics including steering and powertrain control systems.

Advanced braking and steering systems are core technologies for all automated driving functions. As one of the global leaders in brake control systems, Knorr-Bremse has established and expanded its expertise in vehicle dynamics over many years. With the acquisition of tedrive Steering Systems GmbH in 2016, Knorr-Bremse has added advanced steering technology to its portfolio. As opposed to the emerging automated driving solutions in passenger cars, full systems competence for automated driving in commercial vehicles requires the ability to control the dynamics of truck and trailer simultaneously. Therefore the addition of Haldex’s expertise in the trailer sector can make a substantial contribution to the development of this comprehensive systems competence.

Knorr-Bremse’s presence in the North American truck market and its well established access to fleet operators will enable Haldex to further grow its trailer business in this region. Haldex is committed to deliver leading products to its customers and emphasizes the importance of truly understanding its clients’ needs. With its well established access to end customers Knorr-Bremse is poised to enable Haldex to channel its product development towards even better solutions. The combination of the complementary activities of both companies will create a full-line supplier that offers its customers substantial added value.

Knorr-Bremse is a family-owned company with a stable and conservative financing policy. The offer is fully financed by cash available from Knorr-Bremse’s own funds, and Knorr- Bremse is accordingly not dependent on any external financing for the offer.

Knorr-Bremse’s takeover bid is subject to certain customary closing conditions, including an acceptance ratio of more than 90 percent of all outstanding Haldex shares and regulatory approval. For information on the offer please refer to the website www.Knorr-BremseandHaldex.com. The acceptance period is expected to begin on or about September 27, 2016.

Knorr-Bremse has a substantial track record of successfully integrating new companies into the Knorr-Bremse group by respecting specific company cultures, valuing established brands, business models and the interests of employees.


Source: The Brake Report



Related News