Twin Disc Inc. Announces Closing Of Veth Propulsion Acquisition
Twin Disc Inc., a power transmission technology and equipment firm for marine- and land-based applications, announced July 2 that it has completed the $60.8 million acquisition of Veth Propulsion Holding, B.V. and its wholly-owned subsidiaries. Veth Propulsion is 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.
In 2018, Veth Propulsion is expected to achieve sales of $60 million. Once fully integrated, Twin Disc anticipates earnings accretion of $0.30 per share by FY2020.
“The acquisition of Veth Propulsion creates a compelling opportunity with strong earnings accretion and returns on invested capital,” said John 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.”
“We are excited to be a part of Twin Disc,” said Erik Veth, general manager of Veth Propulsion. “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.”