JOST Signs Agreement to Acquire Hyva

The acquisition of Hyva will add over EUR 600 million in sales, boosting JOST's pro-forma group sales to EUR 1.8 billion and adj. EBIT to EUR 175 million (LTM June 2024). This strengthens JOST as a leading supplier for commercial vehicles.

Neu-Isenburg, Germany- JOST Werke SE., a producer and supplier of safety-critical systems for commercial vehicles, has signed a sale and purchase agreement with Unitas Capital Pte. Ltd. and NWS Holdings Limited, to purchase all shares in Hyva III B.V., including its direct and indirect subsidiaries worldwide ("Hyva").

Mr. Joachim Dürr, CEO of JOST Werke SE, said,"The acquisition of Hyva is a significant strategic step to push JOST forward on its path to become the number one supplier for on- and off-highway commercial vehicles worldwide. With Hyva, we are acquiring the global market leader for front-end tipping cylinder, expanding our product portfolio with a wide variety of smart hydraulic solutions and increasing JOST’s exposure to fast-growing off-highway markets. Hyva complements and enhances JOST’s family of market-leading brands. The strong know-how and industry expertise of Hyva’s management team and its highly motivated staff fit JOST’s focus on customer orientation, service excellence and high product quality. Together, we are well placed to capitalize on the large infrastructure investments in India, Asia, Brazil and North America, opening up new growth fields for JOST."

Mr. Alex Tan, CEO of Hyva, said, "The acquisition by JOST represents a great opportunity for Hyva. With JOST we have found a strong, long-term oriented industrial partner also committed to advance technology and supply customers with innovative and efficient solutions for transportation, agricultural, construction, mining and environmental commercial vehicle applications. Joining forces will strengthen our market position globally and expand our product offerings. My team and I look forward to bringing our businesses together, developing new markets and seizing new growth opportunities."

Hyva, a supplier of hydraulic solutions with over 40% market share in front-end tipping cylinders, operates in 110+ countries and employs around 3,000 people. Founded in 1979 and headquartered in the Netherlands, Hyva has 14 production facilities across China, India, Brazil, Mexico, Germany, and Italy, serving industries such as transport, agriculture, construction, mining, and environment. For the 12 months ending June 30, 2024, Hyva generated EUR 629 million in sales, with a 23.4% gross margin, EUR 54 million in adjusted EBITDA, and EUR 41 million in adjusted EBIT. JOST expects more than EUR 20 million in annual synergies and plans to align Hyva's profitability with its 10-12% EBIT margin target within two years.

The purchased price amounts to USD 398 million (corresponding to approx. EUR 362 million, translated at the rate 1.10 USD = 1.00 EUR). This represents an EV/EBITDA of 6.7x at the time of purchase and of less than 4.9x post-synergies.

The acquisition of Hyva will drive profitable growth for JOST, creating a larger and stronger global supplier for the commercial vehicle industry. Hyva's strong brand and extensive customer network will allow JOST to expand its product portfolio and replicate its successful sales strategy, enhancing its reach to OEMs, body builders, dealers, and end-users worldwide.

The combined group's pro-forma sales, based on LTM figures as of June 30, 2024, are projected to reach EUR 1.8 billion, with an adj. EBIT of EUR 175 million, boosting adj. EPS in the first year post-closing. The acquisition is pending antitrust approval, with closing expected by early 2025.

About Hyva

Hyva an innovative transport solutions for commercial vehicles and environmental services. It specializes in hydraulic systems used across sectors like transport, agriculture, construction, mining, and waste management. Hyva is the top producer of front-end tipping cylinders and also offers double-acting cylinders, container lifting systems, waste handling solutions, and truck-mounted cranes