NSL is to merge its subsidiary NSL Engineering Pte Ltd’s (“NSE”) RAM container spreader business with Salzgitter Maschinenbau AG’s PEINER SMAG Lifting Technologies GmbH to form a leading global bulk cargo and container lifting device group
SINGAPORE, 5 December 2014 – NSL Engineering Holdings Pte. Ltd. (“NSEH”), a wholly-owned subsidiary of mainboard listed NSL Ltd., has today entered into agreement with Salzgitter Maschinenbau AG (“SMAG”) in relation to the proposed merger of NSE’s RAM container spreader business with SMAG’s grab business.
Under the agreement, NSEH will inject NSE into SMAG’s fully owned subsidiary, PEINER SMAG Lifting Technologies GmbH (“PSLT”) in exchange for 33.33% equity stake in PSLT with SMAG holding the remaining 66.67% equity stake.
NSE is one of the world’s frontrunners in container lifting devices while SMAG’s grab business is a global leader in bulk cargo lifting. The merger will lead to the formation of the world’s largest independent lifting device group in both bulk cargo and container handling.
The merged company, PSLT, will have access to market potential significantly larger than just the port equipment sector, including bulk cargo vessels, waste to energy incinerations plants, scrap metal yards, steel mills, marine dredging and mining businesses.
With this unique partnership, PSLT will be able to offer a full spectrum of bulk cargo and container lifting device solutions to port operators and crane manufacturers worldwide with strong production, storage and after sales service support.
Mr Oo Soon Hee, Executive Director of NSL Ltd, said, “The complementary strengths of both companies should generate significant synergies and serve as a strategic competitive advantage for PSLT to seize further growth opportunities.”
Mr Sebastian H. Brandes, CEO of SMAG, commented, “Both companies hold a top ranking and will develop further in their market segments to become a leading multi-channel provider. Through the merger we are able to extend our marketability in several regions and provide enhanced order performance, delivery and customer service.”
Mr. Philip Lee Tze Yong, CEO of RAM Spreaders said…..”The merger which complements the core strengths of both companies will enable us to strengthen our business relationship with our customers. We will continue to develop and provide innovative solutions and high quality products for both the container and bulk handling industries.”
With the completion of the merger, the PSLT Group should generate an annual turnover of approximately S$240 million with a workforce of more than 1,000 employees. Manufacturing bases are located in Germany, China and India. Through its extensive dealer network, the group is represented in more than 70 countries.