PALFINGER Continues Expansion in the U.S. with Truck-Mounted Aerial Lifts Manufacturer ETI

The PALFINGER Group had a big presence at the Work Truck Show (the biggest trade fair dedicated to commerical trucks in the United States, held in St. Louis March 9-12 this year). The Euro-focused chassis upfitter launched new mechanics bodies, service cranes and air compressors to the American marketplace. The company plans on strengthening its distribution and manufacturing footprint as well, and that growth strategy includes acquiring an 80-percent stake in ETI (Equipment Technology, LLC). The U.S. company headquartered in Oklahoma primarily produces and distributes aerial lifts. With a staff of around 190 ETI generated revenues of approximately USD $45 million in 2009 making it one of the top players in the field of aerial lifts in the North American market.

ETI has a long history as a manufacturer and customer service solution provider and initially focused its operations on the south west of the United States. Its continuous growth was also supported by the acquisition of a majority interest in the service crane manufacturer Ideal Crane in 2007.

The aerial lift business accounts for the majority of the revenues generated by the company, which also manufactures service cranes. The products are distributed via direct sales forces and supported by a nationwide network of independent service outlets and ETI field service employees.

Up to now the majority share of ETI was family-owned. After the investment by PALFINGER who will acquire a majority stakeholding the existing owners will continue to run the company and ETI will have the status of a largely independent business unit within the PALFINGER area North America. The owners were looking for a strategic investor to support ETI’s further organic growth and found such a partner in PALFINGER.

“We have known ETI for a long time and are excited that the company is becoming part of the PALFINGER Group. ETI allows us to realize our strategy of becoming a truly local player in one of our strategic core business segments,” says Herbert Ortner, CEO of PALFINGER AG.

This is a major strategic step for PALFINGER. It enables the Group, which had not been present in the North American market with aerial lifts before, to enter this segment with local products. The strategic partnership opens up significant synergies with the existing U.S. business.

As a result of this cooperation, the consolidated revenues of the PALFINGER Group will increase by around 6 percent and the share in revenues contributed by North America will rise from previously 12 percent to around 18 percent.