SAF-Holland makes an offer to buy Haldex – Equipment
SAF-Holland has made a tender offer for Haldex, offering 3.2 billion Swedish krona, or about $325 million, in cash to buy the shares it does not currently own.
Haldex, which makes brake products and air suspension systems for heavy-duty trucks, said the offer price represents a 46.5% premium to the June 7 closing price. Its board of directors unanimously recommends that shareholders accept the offer, calling the offer of 66 crowns per share a “fair cash price”.
SAF-Holland said “this is the best final offer price and will not be increased”.
This is not the first time that SAF-Holland has attempted to acquire Haldex. In 2016 there was a bidding war between SAF-Holland, Knorr-Bremse and ZF Friedrichshafen, all of which at the time failed in their takeover attempts.
In addition to the 22.5% of shares SAF-Holland has secured deals for, the German company said it has already acquired 14.1% of Haldex’s outstanding shares. It bought 9.2% of major shareholder Knorr-Bremse (which also owns Bendix.) The deal is expected to close in the third quarter.
SAF-Holland said the combined company:
- Create a global champion in chassis-related commercial vehicle systems, with a highly complementary product portfolio
- Have a unique ability to offer integrated mechatronic systems
- Build a spare powerhouse with increased scale, resilience, and profitability
- Respond to and drive major global trends, such as electrification, digitalization and automated driving
In announcing its support for the deal, Haldex’s board noted that the market in which Haldex operates has undergone consolidation and that Haldex’s business is smaller than that of its major competitors, saying that this “presents risks to the business and its ability to realize the full potential of its growth prospects.
He also said that the combination of the two companies “has a compelling strategic rationale and will create value for our customers and employees. The combined businesses, highly complementary from a regional presence and product portfolio perspective, will establish a a strong global player in the commercial vehicle industry. The combination of two strong brands and capabilities will allow Haldex to strengthen its business.”
According to Haldex, SAF-Holland said it intended to keep Haldex’s operations intact, with no significant changes in the employees, management, organization and operations of either company. “Any specific initiatives to be taken as part of the integration will be determined following a detailed review of the combined businesses of SAF-Holland and Haldex during the period following the closing of the offer.”
Both Haldex and SAF-Holland have won multiple HDT Top 20 Products awards.