20 September 2012

PALFINGER expands in South America with acquisition of Tercek in Brazil

20 September 2012 - The PALFINGER Group is strengthening its market presence in South America and has agreed to take over a 100 per cent share in Tercek Usinagem de Precisão Ltda., headquartered in Caxias do Sul, Brazil. Tercek produces metal components and develops electric-powered bus lifts under the brand name Líbero. The company was looking for a strong partner so as to be able to fund market penetration and expected growth. The acquisition is scheduled to be closed shortly. 

Tercek is a small-sized enterprise which, due to its high innovative power, receives funds from the national Studies and Projects Finance Organization (FINEP). Líbero bus lifts represent a new product segment that is considered to have enormous market potential and boasts excellent product features. 

The bus market in Brazil has recorded annual growth of approx. 8 per cent over the past few years. In connection with the further expansion of infrastructure and public transport, it is expected that these growth rates will continue in the coming years as well. The 2014 FIFA World Cup and the 2016 Summer Olympics, which will take place in Brazil, will also contribute to this development. From 2014 onwards, all municipal buses will be statutorily required to be equipped with a bus lift for passengers with limited mobility. Accordingly, the market for this product group is bound to record rapid growth. 

“For PALFINGER, South America is a growth market in which we want to strengthen our presence with products beyond loader cranes. Líbero is a first-rate product for a growing market segment, and it conforms to regional requirements. In Great Britain we are already in the market with passenger lifts, and we are developing regional products in the rest of Europe as well. The takeover of Tercek is a small but valuable step for our growth in South America,” comments Herbert Ortner, CEO of PALFINGER AG, in reference to the strategic significance of the acquisition. 

In Tercek, PALFINGER will primarily reinforce the new product segment of accessibility products. In order to make optimum use of synergies, the factory will be relocated to PALFINGER’s existing site at Caxias do Sul in the medium term. 

For many years PALFINGER has been one of the world’s leading manufacturers of innovative lifting, loading and handling systems. As a multinational group headquartered in Salzburg, the Company’s 5,600 employees generated total sales of EUR 850 million in 2011. 

The Group has production and assembly facilities in Europe, in North and South America as well as in Asia. The pillars of corporate strategy comprise innovation, and the further internationalisation and diversification of products and services. 

Source: PALFINGER