BREAKING: Giant North American manufacturer to enter UK with multi-million acquisition of Silvalea
Savaria, a prominent Canadian accessibility manufacturer of wheelchair lifts, stairlifts and ceiling hoists, is to gain a foothold in the growing global patient sling market and enter the UK market with its impending acquisition of the Silvalea Group.
A major manufacturer in North America
Founded in 1979 and based in Québec, Canada, Savaria has developed a product portfolio spanning a range of different mobility & accessibility products and has over been on the acquisition trail over the past three years to expand its reach in North America.
In under 36 months, Savaria has successfully completed six acquisitions of North American accessibility companies, mainly in the lift sector, including Garaventa Lift, Florida Lifts, H.E.S. Elevator Services, Visilift, Span-America Medical Systems and Premier Lifts.
Whilst the majority of Savaria’s acquisitions had been focused primarily in the North American market, it was the Group’s acquisition of Vancouver-based accessibility manufacturer Garaventa Lift in September 2018 that introduced the company to the European market. Following the purchase, Savaria gained manufacturing capabilities in Italy, alongside direct sales channels in a number of mainland European countries, including Italy and Germany.
Crossing the pond
Marking its first acquisition of a British company, as well as its first foray into the UK market, Savaria’s purchase of the Silvalea Group is expected to close in July 2019.
The move would see the Canadian manufacturer purchase all of the issued and outstanding shares of Silvalea and D-ansermed for a total purchase price of £4.6million.
Established in 1993, Silvalea manufactures an extensive range of patient slings and accessories, including developing complex patient transfer solutions, whilst its sister company D-ansermed, formed in 2012, develops safety components used in moving & handling operations.
Selling 70,000 slings annually and with a reputation as a high-quality sling specialist, Silvalea generates the majority of its sales in the UK and Europe, whilst also enjoying smaller sales internationally – primarily Australia and Canada.
In its last fiscal year, the Newton Abbot-based Sivalea Group recorded revenues of £4million.
Gaining a foothold in the patient sling sector
With the global medical sling market forecast to be in excess of $500 million (USD) in 2019, with an annual growth rate of 11 percent, Savaria says it will leverage Silvalea’s sling manufacturing expertise to accelerate the production of custom slings from its South Carolina facilities to serve the US and Canadian markets.
Additionally, the Canadian Group emphasises that the purchase will provide valuable access to Silvalea’s established UK and European customer channels, with opportunities to cross-sell with its ceiling hoist range.
“The extensive offerings and industry-leading reputation of Silvalea is an exceptional complement to our ceiling lift product portfolio,” commented Marcel Bourassa, President and Chief Executive Officer of Savaria.
“Our research team in Magog, Québec, headed by Jonathan Benoit would work closely with the R&D team at Silvalea to continue to bring the most innovative, high-quality patient handling solutions to the market.”
Noting that a single ceiling lift installation can use hundreds of slings over the course of its product lifespan, Savaria underlined Silvalea’s 800 different sling designs in its UK-based factory as a key highlight of the acquisition.
“This is an outstanding opportunity for Savaria to leap ahead in the patient handling market and benefit from recurring revenue. I look forward to what we can accomplish together,” finished Marcel.
If successful, Savaria confirmed key senior management from Silvalea would remain in place, post-transaction closing.
In February 2019, THIIS reviewed the growing moving and handling market in-depth, following a flurry of activity in the sectors towards the end of 2018.https://thiis.co.uk/breaking-giant-north-american-manufacturer-to-enter-uk-with-multi-million-acquisition-of-silvalea/https://i1.wp.com/thiis.co.uk/wp-content/uploads/2019/06/silvalea-sling.jpg?fit=1000%2C683&ssl=1https://i1.wp.com/thiis.co.uk/wp-content/uploads/2019/06/silvalea-sling.jpg?resize=150%2C150&ssl=1Mergers & AcquisitionsNewsroomSupplier NewsCanada,D-ansermed,Florida Lifts,Garaventa Lift,hoists,manufacturer,moving and handling,Savaria,silvalea,SIlvalea Group,slings,VisiliftSavaria, a prominent Canadian accessibility manufacturer of wheelchair lifts, stairlifts and ceiling hoists, is to gain a foothold in the growing global patient sling market and enter the UK market with its impending acquisition of the Silvalea Group. A major manufacturer in North America Founded in 1979 and based in Québec,...Calvin BarnettCalvin Barnettcalvin@thiis.co.ukAdministratorTHIIS Magazine