NSL Engineering Holdings Pte. Ltd. (NSEH), a wholly-owned subsidiary of NSL Ltd., has 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 RAM 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.
According to a statement, 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.
“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,” the statement said
Sebastian Brandes, CEO of SMAG, said: “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.”
Philip Lee Tze Yong, CEO of RAM Spreaders, added: “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 US$240m 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.