Twin Disc, a provider of power transmission technology and equipment for marine- and land-based applications, has completed a US$60m acquisition of Veth Propulsion, a supplier of main and auxiliary marine propulsion products.
The acquisition of Veth Propulsion establishes Twin Disc as one of the leading power control business for the global marine industry and expands Twin Disc’s presence in the market by adding complementary products and new technologies. For 2018, Veth Propulsion is expected to achieve sales of US$60m and adjusted EBITDA of US$7m. Once fully integrated and synergies are implemented, Twin Disc anticipates diluted GAAP earnings accretion of US$0.30 per share by 2020.
“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.”
- July 2018