Savaria offers £296m to Handicare Group to create global leader in accessibility
In what is set to be one of the mobility industry’s largest mergers, multinational mobility and accessibility manufacturer Savaria has made a cash offer of £296 million to acquire all the issued and outstanding shares of Handicare Group.
The acquisition was given the green light after it had been approved and registered by Sweden’s Financial Supervisory Authority and will enable Savaria to become a global leader in the accessibility industry, with approximately 2,300 employees across the world.
It also represents a unique opportunity for Savaria to acquire a top stairlift manufacturer, producing over 45,000 stairlifts annually, bringing an innovative new product line to complement its elevator and wheelchair platform lift portfolio.
The acceptance period for the offer is now open until 4 March but the board of Handicare has already recommended that its shareholders accept the offer, according to a report by GlobalNewsWire. Its largest shareholder, Cidron Liberty Systems, has stated that it intends to accept the offer.
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.
Handicare provides mobility solutions to increase the independence of physically challenged or elderly people, manufacturing and selling curved and straight stairlifts, transfer, lifting and repositioning aids, and vehicle accessibility products. For the fiscal year ended December 31, 2020, Handicare reported preliminary sales of £179 million.
It is a global company with sales in approximately 40 countries and has primary manufacturing locations in the UK, as well as in the Netherlands, the United States, and China.
Marcel Bourassa, President and Chief Executive Officer of Savaria commented that has long been his vision to build a company that would serve a global market.
“People throughout the world are ageing and in need of equipment that gives them independence and ways to stay in their homes longer.
“In our discussions with Handicare, it is clear we have a shared vision and mission. Their strong stairlift portfolio, sophistication of manufacturing and market reach provides an exceptional complement to our business.
“Together, we will be well-positioned to become a world-leading company to answer the needs of this growing market. I thank our employees for their dedication to Savaria, particularly through the challenges of COVID-19 and I also wish to thank our Board of Directors and our team of advisors.”
