France’s Altrad Group to buy most of Hertel for $244m

Altrad Group, the French manufacturer of scaffolding and cement mixers, is to buy a number of divisions of Dutch industrial services company Hertel for $244m. 

Under the deal, which has the support of Hertel’s management, Altrad will buy its access, insulation, corrosion protection and mechanical businesses. 

Hertel Offshore, which designs and builds living quarters and accommodation modules, will not be included in the transaction. This business will be continued under the ownership of NPM Capital and Sofinim. The agreement has the support of Hertel’s management, and is now subject to the approval of competition authorities and the completion of the consultation process with Hertel’s works council. 

The transaction is expected to close in the second quarter of 2015.

After the deal, Altrad will employ about 17,000 people and will have a turnover in excess of $1.7bn; it will compete in Europe, the Middle East, the Caspian and Asia Pacific. 

Mohed Altrad, the Syrian-born president of the Montpellier-based company, said: "We consider Hertel a promising and exciting company with an attractive long-term growth potential, solid management and corporate values very similar to Altrad. 

"Combining management teams with different sets of experience will enable us actively to exchange ideas and best practices thereby making the combination a benchmark in its industries." 

Victor Aquina, the chief executive of Hertel, said: "We are excited about this new step in the rich history of Hertel. Altrad will be an excellent partner, enabling Hertel to realise its ambitions in accordance with our long-term growth strategy." 

Hertel’s senior management will stay involved with the Offshore operations. The Offshore business had a turnover of $63m last year. The business will change its name going forward.  

Image: Hertel employees (Hertel)