Twin Disc, Inc. Announces Acquisition of Kobelt
Twin Disc (NASDAQ: TWIN) has completed the acquisition of Kobelt Manufacturing for $16.5 million. Kobelt, a Canadian company specializing in brake, control, and steering systems for industrial and marine markets, generated approximately $14 million in revenue for the year ending December 31, 2024.
The acquisition is expected to be immediately accretive to Twin Disc's U.S. GAAP earnings. Kobelt brings complementary products, extensive after-sales services, and in-house foundry capabilities with precision machining. The company has established relationships in 60 countries and will benefit from Twin Disc's global presence to expand its international reach.
The strategic combination aims to strengthen Twin Disc's product portfolio in the industrial and marine sectors, leveraging both companies' extensive history and expertise to create value for their combined customer base.
Twin Disc (NASDAQ: TWIN) ha completato l'acquisizione di Kobelt Manufacturing per 16,5 milioni di dollari. Kobelt, un'azienda canadese specializzata in sistemi di frenatura, controllo e sterzo per i mercati industriali e marittimi, ha generato circa 14 milioni di dollari di fatturato per l'anno che si è concluso il 31 dicembre 2024.
Si prevede che l'acquisizione sarà immediatamente accrescitiva per gli utili di Twin Disc secondo i principi contabili GAAP statunitensi. Kobelt porta prodotti complementari, ampi servizi post-vendita e capacità di fonderia interna con lavorazione di precisione. L'azienda ha relazioni consolidate in 60 paesi e beneficerà della presenza globale di Twin Disc per espandere la propria portata internazionale.
La combinazione strategica mira a rafforzare il portafoglio prodotti di Twin Disc nei settori industriale e marittimo, sfruttando l'ampia storia e competenza di entrambe le aziende per creare valore per la loro clientela combinata.
Twin Disc (NASDAQ: TWIN) ha completado la adquisición de Kobelt Manufacturing por 16,5 millones de dólares. Kobelt, una empresa canadiense especializada en sistemas de frenos, control y dirección para los mercados industrial y marino, generó aproximadamente 14 millones de dólares en ingresos para el año que terminó el 31 de diciembre de 2024.
Se espera que la adquisición sea inmediatamente accretiva para las ganancias de Twin Disc según los principios contables GAAP de EE. UU. Kobelt aporta productos complementarios, amplios servicios post-venta y capacidades de fundición interna con mecanizado de precisión. La empresa tiene relaciones establecidas en 60 países y se beneficiará de la presencia global de Twin Disc para expandir su alcance internacional.
La combinación estratégica tiene como objetivo fortalecer el portafolio de productos de Twin Disc en los sectores industrial y marino, aprovechando la amplia historia y experiencia de ambas empresas para crear valor para su base de clientes combinada.
Twin Disc (NASDAQ: TWIN)는 Kobelt Manufacturing의 인수를 1,650만 달러에 완료했습니다. Kobelt는 산업 및 해양 시장을 위한 브레이크, 제어 및 조타 시스템을 전문으로 하는 캐나다 회사로, 2024년 12월 31일로 종료된 연도에 약 1,400만 달러의 수익을 올렸습니다.
이번 인수는 Twin Disc의 미국 GAAP 수익에 즉각적인 긍정적인 영향을 미칠 것으로 예상됩니다. Kobelt는 보완적인 제품, 광범위한 애프터 서비스 및 정밀 가공을 위한 사내 주조 능력을 제공합니다. 이 회사는 60개국에 확립된 관계를 가지고 있으며, Twin Disc의 글로벌 존재로부터 혜택을 받아 국제적 범위를 확장할 것입니다.
이 전략적 조합은 산업 및 해양 부문에서 Twin Disc의 제품 포트폴리오를 강화하는 것을 목표로 하며, 두 회사의 광범위한 역사와 전문성을 활용하여 결합된 고객 기반에 가치를 창출합니다.
Twin Disc (NASDAQ: TWIN) a finalisé l'acquisition de Kobelt Manufacturing pour 16,5 millions de dollars. Kobelt, une entreprise canadienne spécialisée dans les systèmes de freinage, de contrôle et de direction pour les marchés industriels et maritimes, a généré environ 14 millions de dollars de chiffre d'affaires pour l'année se terminant le 31 décembre 2024.
L'acquisition devrait avoir un impact positif immédiat sur les bénéfices de Twin Disc selon les normes GAAP américaines. Kobelt apporte des produits complémentaires, des services après-vente étendus et des capacités de fonderie interne avec usinage de précision. L'entreprise a des relations établies dans 60 pays et bénéficiera de la présence mondiale de Twin Disc pour élargir sa portée internationale.
Cette combinaison stratégique vise à renforcer le portefeuille de produits de Twin Disc dans les secteurs industriel et maritime, en s'appuyant sur l'histoire et l'expertise étendues des deux entreprises pour créer de la valeur pour leur clientèle combinée.
Twin Disc (NASDAQ: TWIN) hat die Übernahme von Kobelt Manufacturing für 16,5 Millionen Dollar abgeschlossen. Kobelt, ein kanadisches Unternehmen, das auf Brems-, Steuer- und Lenksysteme für die Industrie- und Schifffahrtsmärkte spezialisiert ist, erzielte im Jahr zum 31. Dezember 2024 einen Umsatz von etwa 14 Millionen Dollar.
Die Übernahme wird voraussichtlich sofort positiv zu den GAAP-Gewinnen von Twin Disc in den USA beitragen. Kobelt bringt ergänzende Produkte, umfassende After-Sales-Services und interne Gießereikapazitäten mit präziser Bearbeitung mit. Das Unternehmen hat etablierte Beziehungen in 60 Ländern und wird von der globalen Präsenz von Twin Disc profitieren, um seine internationale Reichweite auszubauen.
Die strategische Kombination zielt darauf ab, das Produktportfolio von Twin Disc in den Industrie- und Schifffahrtssektoren zu stärken und sowohl die umfangreiche Geschichte als auch das Fachwissen beider Unternehmen zu nutzen, um Wert für ihre gemeinsame Kundenbasis zu schaffen.
- Immediate accretion to GAAP earnings expected
- Kobelt's $14M revenue contribution for FY2024
- Expansion of product portfolio in industrial and marine sectors
- Access to Kobelt's established presence in 60 countries
- Addition of in-house foundry and precision machining capabilities
- Significant cash outlay of $16.5M for acquisition
Insights
This $16.5 million acquisition of Kobelt represents a calculated strategic move for Twin Disc, with several key implications for investors:
The transaction multiple of 1.18x revenue appears reasonable for an industrial manufacturing acquisition, particularly considering Kobelt's specialized capabilities and established market presence in 60 countries. The immediate accretion to earnings suggests well-planned cost synergies and revenue enhancement opportunities.
Three strategic advantages stand out:
- Vertical integration through Kobelt's in-house foundry and precision manufacturing capabilities, which should enhance operational efficiency and quality control
- Product portfolio expansion into complementary brake, control, and steering systems, positioning Twin Disc as a more comprehensive solutions provider
- Geographic market penetration, leveraging Twin Disc's global distribution network to accelerate Kobelt's international growth
The acquisition strengthens Twin Disc's competitive position in both marine and industrial sectors, potentially creating barriers to entry through enhanced manufacturing capabilities and broader product offerings. The combined entity's expanded product portfolio should increase wallet share with existing customers while attracting new ones seeking integrated solutions.
Integration risks appear manageable given the complementary nature of products and manufacturing processes. The cultural alignment emphasized by both CEOs suggests a smoother transition, though investors should monitor the integration progress over the next 12-18 months for successful realization of synergies.
MILWAUKEE, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Twin Disc, Inc. (NASDAQ: TWIN), a global leader in power transmission technology for marine and land-based applications, announced today the successful completion of its
Twin Disc's global presence will expand Kobelt's international reach, while Kobelt will contribute complementary products that diversify and enhance Twin Disc's portfolio in the industrial and marine sectors. Kobelt's extensive after-sales services, combined with its in-house foundry and bronze die casting capabilities featuring precision machining, assembly and testing, ensures complete quality control.
For the year ending December 31, 2024, Kobelt delivered approximately
"We are excited to welcome Kobelt to the Twin Disc family of brands," stated John H. Batten, President and CEO of Twin Disc. "Acquiring a well-established company with longstanding relationships in 60 countries and a strong reputation that complements the Twin Disc brand. This acquisition expands our product offering further, enabling growth opportunities and partnerships through our global sales and service team."
Dave Bockhold, CEO of Kobelt, stated: "Twin Disc is the right fit for Kobelt. The complementary nature of our product lines, manufacturing capabilities, and culture positions us as an integrated systems supplier for the Marine and Industrial sectors."
Bockhold added, "Both organizations' extensive history, knowledge, and expertise will add value and expand opportunities to our combined customer base."
About Twin Disc
Twin Disc, Inc. designs, manufactures and sells marine and heavy-duty off-highway power transmission equipment. Products offered include marine transmissions, azimuth drives, surface drives, propellers and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches and control systems. The Company sells its products to customers primarily in the pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government and industrial markets. The Company’s worldwide sales to both domestic and foreign customers are transacted through a direct sales force and a distributor network. For more information, please visit www.twindisc.com.
About Kobelt
Kobelt is a Canadian-based manufacturing company with over 60 years of expertise in designing and producing high-quality products for the marine and industrial sectors. Renowned for its history of innovation, Kobelt specializes in propulsion, steering, thrusters, and braking control systems. For more information, please visit www.kobelt.com/
Forward-Looking Statements
This press release may contain forward-looking statements as defined by the Securities and Exchange Commission in its rules, regulations and releases. The words "anticipates," "believes," "intends," "estimates," and "expects," or similar anticipatory expressions, usually identify forward-looking statements. The Company intends that such forward-looking statements qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. All forward-looking statements are based on current expectations and are subject to certain risks and uncertainties that could cause actual results or outcomes to differ materially from current expectations. Such risks and uncertainties include the impact of general economic conditions and the cyclical nature of many of the Company's product markets; foreign currency risks and other risks associated with the Company's international sales and operations; the ability of the Company to successfully implement price increases to offset increasing commodity costs; the ability of the Company to generate sufficient cash to pay its indebtedness as it becomes due; and the possibility of unforeseen tax consequences and the impact of tax reform in the U.S. or other jurisdictions. These and other risks are described under the caption "Risk Factors" in Item 1A of the Company's most recent Form 10-K filed with the Securities and Exchange Commission, as supplemented in subsequent periodic reports filed with the Securities and Exchange Commission. Accordingly, the making of such statements should not be regarded as a representation by the Company or any other person that the results expressed therein will be achieved. The Company assumes no obligation and disclaims any obligation to publicly update or revise any forward-looking statements to reflect subsequent events, new information, or otherwise.
Investors:
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TwinDiscIR@Riveron.com
Source: Twin Disc, Incorporated
FAQ
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