JOST expands with Hyva acquisition

NEU-ISENBURG – JOST Werke SE, a prominent global manufacturer of systems for commercial vehicles, has signed an agreement to acquire Hyva, a leading provider of hydraulic solutions. The deal, valued at approximately EUR 362 million, is expected to bolster JOST's sales by over EUR 600 million, creating a combined entity with pro-forma group sales nearing EUR 1.8 billion.

The acquisition promises strategic growth in the off-highway market, particularly in rapidly developing regions like India, Asia, and Brazil, and is anticipated to be accretive to JOST's adjusted earnings per share in the first year following the transaction's close. The merger is financed through cash and debt and is projected to maintain JOST's strong financial position with a pro-forma group leverage of 2.4x adjusted EBITDA.

Hyva, which commands a global market share exceeding 40% for front-end tipping cylinders, has a significant presence with a sales and service network in over 110 countries and approximately 3,000 employees worldwide. In the twelve months ending June 30, 2024, Hyva reported sales of about EUR 629 million, with an adjusted EBITDA of EUR 54 million.

Joachim Dürr, CEO of JOST, highlighted the strategic importance of the acquisition, noting Hyva's complementary product portfolio and market leadership in smart hydraulic solutions. The merger is set to capitalize on substantial infrastructure investments across key global markets.

Alex Tan, CEO of Hyva, expressed optimism about the acquisition by JOST, emphasizing the strengthened market position and expanded product offerings that will result from the union of the two companies.

The transaction is subject to regulatory approvals and is expected to close by early 2025. JOST's acquisition of Hyva is positioned to unlock new growth opportunities, enhancing its global footprint and customer service capabilities in the commercial vehicle industry. This news is based on a press release statement.

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Source: Investing.com