Revenue spikes in Q3 for giant North American stairlift & sling supplier after Silvalea acquisition
Multinational mobility and accessibility manufacturer Savaria has announced its results for the third quarter 2019 ended on September 30, 2019, revealing an £18.9 million increase in revenue as it looks to capitalise on its purchase of UK-based Silvalea.
A Canadian-based supplier prominent in the wheelchair lift, stairlift and ceiling hoist segments, Savaria is a dominant and rapidly expanding player in North America, having completed six acquisitions in under 36 months.
Through its purchase of Garaventa Lift in 2018, the company gained a reach into Europe, acquiring manufacturing facilities in Italy and direct sales channels in a number of mainland European countries.
In July 2019, the global company turned its attention to the UK with the acquisition of Silvalea, the Newton Abbot-based manufacturer of an extensive range of patient slings and accessories.
At the time, Savaria said the purchase of the UK sling supplier would help to accelerate its production of custom slings to serve the US and Canadian markets, alongside providing the Group access to Silvalea’s well-established customer channels, enabling it to cross-sell its ceiling hoist range.
Marking Savaria’s first quarterly financial results since the acquisition, the Group reported revenue for Q3 was £74.9 million, up a substantial 33.8 percent compared to the same quarter last year.
As well as increased revenues, the accessibility company’s gross margin also rose sharply by 34.3 percent to £24.9 million and its EBITDA margin – a measure of profitability – stood at 16.2 percent compared to 13.8 percent last year.
Bolstered by the results, Marcel Bourassa, President and Chief Executive Officer of Savaria, highlighted that the company was looking ahead at new growth prospects, specifically in Europe and in its patient handling segment.
“Two new products in particular offer us incremental growth opportunities. In early 2020, the Vuelift panoramic elevator will be available in a new smaller configuration to suit the needs of the European market and broader retrofit market globally,” he explained.
“In addition, our acquisition of Silvalea earlier this year is opening up new opportunities for us to sell ceiling lifts and slings, particularly in North America. Savaria has now begun to manufacture slings in its Greenville, South Carolina facility, and will continue to expand its sling operations throughout 2020.”
The global accessibility player is forecasting full-year revenue in 2019 to range between £287 million £295 million.https://thiis.co.uk/revenue-spikes-in-q3-for-giant-north-american-stairlift-sling-supplier-after-silvalea-acquisition/https://i2.wp.com/thiis.co.uk/wp-content/uploads/2019/06/silvalea-sling.jpg?fit=1000%2C683&ssl=1https://i2.wp.com/thiis.co.uk/wp-content/uploads/2019/06/silvalea-sling.jpg?resize=150%2C150&ssl=1Mergers & AcquisitionsNewsroomSupplier NewsTrade Newsacquisition,Canadian,Garaventas Lift,Newton Abbot,North America,patient handling,patient slings,Savaria,silvalea,slings,StairliftMultinational mobility and accessibility manufacturer Savaria has announced its results for the third quarter 2019 ended on September 30, 2019, revealing an £18.9 million increase in revenue as it looks to capitalise on its purchase of UK-based Silvalea.A Canadian-based supplier prominent in the wheelchair lift, stairlift and ceiling hoist...Calvin BarnettCalvin Barnettcalvin@thiis.co.ukAdministratorTHIIS Magazine