Jost enters into exclusivity agreement to acquire Hyva

Jost acquisition of Hyva will enhance its offerings and strengthen its position in the commercial vehicle sector.

Neu-Isenburg, Germany- JOST Werke SE., a producer and supplier of safety-critical systems for commercial vehicles, they entered into an exclusivity agreement with Unitas Capital Pte. Ltd. and NWS Holdings Limited, with a view to finalizing the terms of a transaction in relation to the purchase of all the shares in Hyva III B.V., including its direct and indirect subsidiaries worldwide. JOST is confident that a definitive agreement will be signed in the fourth quarter of 2024.

Founded in 1979 and based in the Netherlands, Hyva in hydraulic solutions for commercial vehicles, with over 40% market share in front-end tipping cylinders. With 14 production facilities across China, India, Brazil, and Europe, Hyva serves sectors like transport, agriculture, construction, mining, and environmental industries.

JOST believes that acquiring Hyva will drive further growth by leveraging Hyva’s strong brand and extensive product range. This acquisition will enhance JOST’s offerings and bolster its position in the commercial vehicle sector.

Mr. Joachim Dürr, CEO of JOST Werke SE, said, “We are excited to announce an exclusivity agreement for acquiring Hyva, a leading brand with a strong market position and a skilled team. This move aligns with JOST’s goal to be the top supplier for commercial vehicles worldwide. Hyva’s expertise will enhance JOST’s product portfolio and support technological advancements. The acquisition will expand our sales and production network, making us a stronger industry leader and a more valuable partner to our global customers.”

Mr. Alex Tan, CEO of Hyva, said, “We view JOST’s acquisition as a major milestone for Hyva. Both companies share a commitment to advancing transportation, environmental, and agricultural solutions. This partnership will boost our global market position, expand our product range, and broaden our reach. By combining our strengths, we will accelerate the adoption of new digital technologies and enhance R&D for smart transportation solutions. My team and I are ready for this transition and eager to grow and better serve our customers together.”

In the last twelve months, ended June 30, 2024, Hyva generated sales of about EUR 624 million, a gross profit margin of 23.4% and an adj. EBIT of EUR 41 million. JOST is targeting a synergy potential of more than EUR 20 million p.a. and expects the acquisition to be accretive. Through a combination of both businesses as well as the realization of the identified synergies, Hyva’s profitability is expected to match JOST’s strategic adj. EBIT margin corridor (10.0% to 12.0%) two years after closing.

The transaction will be financed through a combination of cash, drawdowns from currently undrawn credit facilities as well as via debt acquisition financing. No equity capital increase is contemplated nor necessary in order to finance the transaction.

Based on pro-forma LTM figures as of June 30, 2024, the combined pro-forma group leverage (net debt to LTM adjusted EBITDA excl. IFRS 16) is expected to remain below 2.5x adj. EBITDA post transaction.