SAF-Holland has made a takeover bid for Haldex, offering 3.2 billion Swedish crowns, or about $325 million, in cash to purchase the shares it does not currently own.
Haldex, which makes brake products and air suspension systems for heavy vehicles, said the offer price represents a premium of 46.5% over the June 7 closing price. Its board unanimously recommends that shareholders accept the offer, calling the 66 crowns per share offer “a fair cash price.”
SAF-Holland said this “is the best and final offer price and it will not be increased.”
It’s not the first time SAF-Holland has tried to acquire Haldex. In 2016, there was a bidding war between SAF-Holland, Knorr-Bremse, and ZF Friedrichshafen, which at that time all failed in their takeover attempts.
In addition to the 22.5% of shares that SAF-Holland has secured agreements for, the German company said it has already acquired 14.1% of Haldex’s outstanding shares. It bought 9.2% from top shareholder Knorr-Bremse (which also owns Bendix.) The deal is expected to close in the third quarter.
SAF-Holland said the combined company will:
- Create a global champion for chassis-related commercial vehicle systems, with a highly complementary product portfolio
- Have a unique ability to offer integrated mechatronic systems
- Create an aftermarket powerhouse with increased scale, resilience and profitability
- Respond to and drive global megatrends, such as electrification, digitalization, and automated driving
In announcing their support of the deal, the Haldex board noted that the market where Haldex is active has undergone consolidation, and Haldex’s business is smaller than its major competitors, saying this “poses risks to the company and its ability to realize the full potential of its growth prospects.”
It also said the combination of the two companies “has a compelling strategic rationale and will create value for our customers and employees. The combined activities, which is highly complementary from a regional presence and product portfolio perspective, will establish a strong global player in the commercial vehicle industry. A combination of two strong brands and capabilities will enable Haldex to strengthen its business.”
According to Haldex, SAF-Holland said it intends to retain the operations of Haldex intact, without significant changes to either company’s employees, management, organization and operations. “Any specific initiatives to be implemented pursuant to the integration will be determined following completion of a detailed review of the combined business of SAF-Holland and Haldex in the period following the completion of the offer.”
Both Haldex and SAF-Holland have been the recipient of multiple HDT Top 20 Products awards.