Global equipment specialist, SAF-Holland, has acquired trailer axle and suspension system manufacturer, York Transport Equipment – Asia, following the announcement of its majority ownership of Italian tow coupling business, V.Orlandi.

According to SAF-Holland, the purchase price for the stake in York, including all liabilities, is €33 million ($52.6 million AUD), and is anticipating a contribution to SAF-Holland Group sales of around €50 million ($79.7 million AUD) with an adjusted earnings before interest and taxes (EBIT) margin in the mid-single-digit percentage range. The closing of the transaction and the subsequent inclusion in SAF-Holland Group's scope of consolidation is expected Q2 2018.

The York Group reportedly has a strong market position in the Asia Pacific region, particularly in the heavy-duty segment (> 9 tonnes) for trailer axles and mechanical suspension systems. York is also one of the main suppliers in India for semi-trailers' spare parts and accessories. The York Group operates major production sites in Pune, India, and Qingdao, China, and supplies most of the major truck and trailer manufacturers in the region. Next to India, the York Group also has significant operations in other fast-growing Southeast Asian markets, such as Thailand, Indonesia and Vietnam besides Australia. This geographical positioning complements the regional presence of the SAF-Holland Group.

Over the past few years, the York Group has built a strong service and spare parts network in India with more than two hundred service points. This network will effectively strengthen the aftermarket business of the SAF-Holland Group in the region.



"Following the takeover of the Brazilian company, KLL, in 2016 and most recently of V.Orlandi in Italy, the acquisition of the York Group is yet another step towards our targets under our 2020 growth strategy,” said SAF-Holland CEO, Detlef Borghardt.

“We will become one of the market leaders in India, one of the fastest growing transportation markets in the world, almost overnight.

“This will also allow us to position ourselves early on for the foreseeable changes in many of these markets towards more technologically sophisticated solutions. We expect the load and safety regulations in other APAC countries to be tightened gradually over the next few years - similar to what we are currently seeing in China. Based on its product portfolio, SAF-Holland is well-equipped for the upcoming changes,” he said.