JOST Werke SE (JOST), a global leader in safety-critical systems for commercial vehicles, has announced an exclusivity agreement with Unitas Capital Pte. Ltd. and NWS Holdings Limited. This agreement is a significant step toward acquiring all shares in Hyva III B.V., including its subsidiaries worldwide. JOST is optimistic about finalizing the acquisition with a definitive agreement expected by Q4 2024.
Hyva: A Market Leader in Hydraulic Solutions
Founded in 1979 and based in the Netherlands, Hyva is renowned for its hydraulic solutions for the commercial vehicle sector. With over 40% global market share in front-end tipping cylinders, Hyva stands as a dominant force in the industry. Operating across 14 production facilities located in China, India, Brazil, and Europe, the company caters to industries such as transport, construction, agriculture, mining, and environmental services.
JOST’s Vision for Growth
JOST views the acquisition of Hyva as a powerful opportunity for growth. Hyva’s established brand and comprehensive product portfolio will complement JOST’s current offerings. By leveraging Hyva’s extensive customer base, including OEMs, body builders, and end-users, JOST aims to strengthen its global position in the commercial vehicle market.
Joachim Dürr, CEO of JOST Werke SE, shared his enthusiasm, stating, “We are thrilled to have secured exclusivity for this acquisition. Hyva is a market leader with a trusted brand and expert team. This strategic move aligns with our mission to become the top supplier for both on- and off-highway commercial vehicles globally. Hyva’s hydraulic expertise will also enhance the technological development of JOST’s existing products, driving further innovation.”
Hyva’s Growth Prospects
Hyva’s CEO, Alex Tan, echoed these sentiments, recognizing the acquisition as a pivotal moment for Hyva. “JOST is a well-respected partner in the commercial vehicle industry, and we share the same vision for developing innovative, sustainable transportation solutions. This partnership will enable Hyva to expand its product offerings, reach new markets, and accelerate the adoption of advanced digital technologies in smart transportation.”
Financial Outlook and Synergies
In the 12-month period ending June 30, 2024, Hyva reported sales of approximately EUR 624 million, with a gross profit margin of 23.4% and an adjusted EBIT of EUR 41 million. JOST anticipates achieving synergy savings of over EUR 20 million annually, expecting the acquisition to be financially beneficial. Post-acquisition, Hyva’s profitability is projected to align with JOST’s strategic adjusted EBIT margin goal of 10.0% to 12.0%, within two years.
The transaction will be financed through a combination of cash reserves, existing credit facilities, and debt financing. Importantly, no equity capital increase is planned or needed for the transaction. Upon completion, the combined entity’s pro-forma leverage ratio is expected to remain below 2.5x adjusted EBITDA (excluding IFRS 16).
Investor Conference Call
JOST will host a conference call for investors and analysts on September 17, 2024, at 11:00 a.m. CEST to discuss the details of the transaction and its strategic implications.
This acquisition represents a bold step forward for JOST and Hyva, positioning the combined entity as a powerhouse in the global commercial vehicle industry. As both companies join forces, the move is set to unlock new opportunities for innovation, market expansion, and enhanced customer solutions.
