Twin Disc, Inc. a provider of power transmission technology and equipment for marine- and land-based applications, announced today that it has completed the €52.1 million (approximately $60.8 million), acquisition of Veth Propulsion Holding, B.V. and its wholly-owned subsidiaries (“Veth Propulsion”), a global supplier of main and auxiliary marine propulsion products. The closing price included net cash and working capital adjustments.
The acquisition of Veth Propulsion establishes Twin Disc as a leading power control business for the global marine industry and expands Twin Disc’s presence in the market by adding complementary products and powerful new technologies. In addition, Veth Propulsion enhances Twin Disc’s engineering talent and product development capabilities.
For calendar 2018, Veth Propulsion is expected to achieve sales of $60 million and adjusted EBITDA of $7 million. Once fully integrated and synergies are implemented, Twin Disc anticipates diluted GAAP earnings accretion of $0.30 per share by fiscal 2020.
“The acquisition of Veth Propulsion creates a compelling opportunity with strong earnings accretion and returns on invested capital,” stated John H. Batten, President and CEO of Twin Disc. “For more than two years we have worked with Veth Propulsion and have developed a strong relationship and unique insight into their business and culture. This familiarity will allow for an efficient integration of their operations into Twin Disc while accelerating our sales and marketing opportunities. We are extremely excited about the platform we have created to serve the global marine industry and believe this acquisition will create significant value for our shareholders.”
Erik Veth, General Manager of Veth Propulsion stated, “We are excited to be a part of Twin Disc. Our two companies share a common culture based on a commitment to supplying high-quality, market-leading power control systems to the marine market while serving customers through a global sales and support network.”