Cargotec has signed an agreement with JCE Invest AB to establish a joint venture, Bruks Siwertell Group, specialised in dry bulk handling. The new joint venture will own Siwertell AB and, from the JCE side, BRUKS Holding AB
While Cargotec has been very acquisitive in the past 15 years and more, this looks like a major divestment Cargotec will own 48% of the shares in Bruks Siwertell Group, and JCE Invest AB will own 52%. The ownerships are included to venturers’ consolidated financial statements in accordance with the applicable regulation. The transaction was signed and closed on 9th May 2018.
Cargotec acquired Siwertell through its takeover of BMH Marine in 2006 and it was placed in MacGregor as the latter included a bulk focus in terms of shipboard cranes and hatch covers. However, it was not a good fit, so later Siwertell was transferred to the Kalmar brand, in the run-up to MacGregor being listed on the Singapore Stock Exchange in 2013.
Commenting on the latest move, Antti Kaunonen, President, Kalmar, said: "This joint venture supports Cargotec’s strategy to focus on container ports, heavy industrial segment and logistics. Siwertell’s business is outside these core focus areas, with different customers, customer locations and limited synergies with the rest of our businesses.
"By joining forces with JCE Group, we are able to create a company that will be a significant player in the bulk material handling with a globally competitive and specialised product portfolio."
Per Karlsson, Managing Director, Siwertell, said: "This is a true partnership between two strong brands, Siwertell and BRUKS, as they complement each other very well both in terms of product portfolio and market coverage. Siwertell will benefit from BRUKS’s strong position in the US market whereas BRUKS will gain access to Siwertell’s Asian network, knowledge and exposure. Together we will be a full line supplier for almost all types of bulk materials."
Peter Jonsson, Group CEO, BRUKS, said: "Together BRUKS and Siwertell will have a strong position in the dry bulk handling industry and attractive growth opportunities in new markets and customer segments including biomass, bioenergy and biofuels industries. This cooperation will add customers, competence, additional knowledge, capabilities and products to support the future growth of the new company."
Siwertell is a leading supplier of ship unloaders, road-mobile unloaders, port-mobile unloaders, ship loaders, mechanical and pneumatic conveying systems, and bulk terminal solutions. Most equipment is customised according to individual bulk operating requirements, but the company also offers standardised products. In 2017, Siwertell generated total revenues of SEK582M and it employs 114 people in Bjuv, Sweden.
BRUKS is a leader in mechanical-engineering and equipment supply for the bulk materials handling industries. The company provides specialised customer solutions, including the development of custom machines and systems. BRUKS product portfolio offers a wide variety of customised solutions for the bulk materials handling industry. In 2017, BRUKS generated total revenues of SEK707m and it employs 246 people in Sweden, the USA, Germany and Lithuania.