Acquisition has global impact; growth in Australia and Georgia.
Savaria to Acquire Garaventa
Savaria Corp. agreed in July to acquire the issued and outstanding shares of Garaventa Lift for a total purchase price of approximately CHF74 million (US$74.27 million), subject to customary closing adjustments prior to the expected closing of the deal in October. It gives Savaria a wider footprint in North America via a 120,000-sq.-ft. manufacturing facility (built in 2017) in Surrey, Canada (ELEVATOR WORLD, August 2018), and eight additional sales offices. Further sales offices will be acquired in Switzerland, Germany, Italy, the Czech Republic and Poland, as will a 33,000-sq.-ft. manufacturing facility in Milan, Italy. In China, Savaria will gain a sales office and light assembly capabilities in Shanghai.
Savaria anticipates synergies of approximately CAD2 million (US$1.51 million) per year in the first full year, and an additional CAD2 million in the second full year after closing, from:
- Cost savings from combined purchasing and best pricing with suppliers
- Efficiencies gained through joint marketing, systems integration and product development
- Global distribution, which creates significant cross-selling opportunities, especially in Europe.
Marcel Bourassa, chairman, president and CEO of Savaria, explained:
“We have always had high respect for Garaventa as a supplier of great products backed by strong employees. Our combined strength allows us to leverage their West Coast presence with our East Coast advantage and to gain a shared position in China. It also offers Savaria a new entry into Europe. It is quite an amazing time for both companies to join as one and grow together.” Established in 1978 as the accessibility division of the former
Garaventa Holding AG (now the Doppelmayr/Garaventa Group), Garaventa Lift manufactures a wide range of wheelchair lifts, including inclined and vertical platform lifts and portable wheelchair lifts; and a full suite of residential elevators and commercial limited-use, limited-application (LU/LA) elevators. In 2017, Garaventa recorded revenues of CHF82 million (US$82.31 million) and adjusted earnings before interest, taxes, depreciation and amortization of CHF6.3 million (US$6.32 million). It is headquartered in Goldau, Switzerland, and employs 547 people worldwide.
Variety of Factors Giving Australian Home- Elevator Market a Lift
Home-elevator manufacturers in Australia are busier than ever, as a variety of factors — including the price of land forcing people to build up, the desire for convenience and an aging population — have created unprecedented demand, Domain reported. Home elevators have also become more affordable, with a unit selling for less than half the approximately AUD$70,000 (US$52,250) it did years ago, according to David Mayer of Compact Home Lifts.
Mayer said his company is selling 25 lifts a month, compared with only one or two several years ago. Erica Collins of The Residential Lift Co. said even people who have no mobility issues are opting for elevators to transport groceries, laundry and even pets, adding, “I don’t think there’s a lift company in Australia that’s keeping up with demand.”
Georgia’s Tech Engineering Group Opening Its First Showroom
Elevator escalator company Tech Engineering Group (TEG) plans to open its first showroom in the Georgian capital of Tbilisi, which will provide better service to the architects and builders with which it works, The Financial reported. In speaking with TEG, the source discovered that, since being established in 2007, TEG has claimed many achievements: becoming the exclusive distributor for Otis and KLEEMANN, obtaining International Organization for Standardization certification and playing a role in many major projects — notably, creation of a tourist zone in Georgia at the Engurl River dam, where a panoramic elevator with 280˚ views is being designed. TEG also noted it developed several vocational programs for those who work on elevators and escalators.
Nearly 30 New Lifts Coming to Bangkok SkyTrain Stations
After hundreds of formal complaints from disabled-rights groups and demand for compensation amounting to approximately US$11.8 million, Bangkok Metropolitan Administration (BMA) says it plans to install 29 lifts at Bangkok Mass Transit System (BTS) SkyTrain stations — 19 for people with disabilities and 10 general purpose, the Bangkok Post reported. BTS said it is investing approximately US$7.9 million to add 19 disabled-access lifts at 16 stations along the Green Line and 10 additional lifts at five additional stations. The Administrative Court ruled in 2015 that BMA and BTS must make disabled-friendly improvements at 23 stations along the Sukhumvit Line within one year. Those adjustments are still incomplete, and the disabled-rights community remains skeptical of the latest plan.
KONE Inaugurates Training Center in Malaysia
KONE inaugurated KONE Academy in Petaling Jaya, Malaysia, in March, describing it as the latest KONE training center to open exclusively for the Malaysian market. KONE CEO Henrik Ehrnrooth and Executive Vice President of Asia Pacific Axel Berkling were joined by Malaysia’s Deputy Director General of Occupational Safety Haji Omar bin Mat Piah for the occasion. Spanning 9,400 sq. ft., the training center will have a classroom for soft skills and lecture-based training, two mock-up elevator shafts for hands-on training, an e-learning center, motor simulators and a product showroom. KONE told ELEVATOR WORLD approximately 2,000 people are expected to visit either the academy or showroom each year.