By incorporating this with the existing portfolio of insulator strings, and cable and contact systems, PFISTERER is now one of the few providers able to cover practically the entire value-added chain for contact and insulation technology from a single source, from energy production to energy distribution. Both parties agreed not to disclose the purchase price.
LAPP Insulators is the world’s third biggest supplier for high-voltage insulators made of porcelain, silicone, and composites; their products are used mainly in high-voltage and traction current networks, switching systems, or transformers in over 70 countries around the world. LAPP Insulators is also active in the consulting and engineering business. The acquisition allows PFISTERER to achieve an important position in the overhead lines (OHL) market segment, which is seeing stable growth rates as a result of the growing demand for energy in emerging countries and the increasing use of renewable energy.
The company already enjoys a very high level of market penetration in North and South America, Eastern Europe, and the Middle East. The collective product portfolio covers all requirements from an array of voltage ranges and areas of application. As a result, PFISTERER can now offer end-to-end solutions to existing and new customers and thereby increase its market significance. “The acquisition of LAPP Insulators significantly improves our position in the global markets and strengthens the competitiveness of our entire group,” emphasizes Michael Keinert, member of PFISTERER’s Management Board. “With revenue of over EUR 400 million, of which approximately 40% is attributable to overhead lines, we can further leverage economies of scale, better utilize production capacity, and, in particular, increase sales influence.”
The acquisition also strengthens the company’s position in terms of technology: LAPP Insulators has its own high-voltage laboratory, for example, and can maintain the highest level of materials technology, using proven measuring and testing methods. The company had over 1,200 employees as of year-end 2014, of which over half worked at international production locations in the USA (Le Roy, New York State), Romania (Turda), and Poland (Jedlina). Over 500 people are employed at the company’s headquarters in Wunsiedel and the neighboring locations in Germany – Redwitz and Selb.
“With its high-tech, cost-effective production locations, LAPP Insulators fits excellently with PFISTERER’s new location concept as part of the PFISTERER NEXT LEVEL investment and growth program” said Keinert. “Together, we will position ourselves as the powerful, cost-effective partner of choice for energy and mobility infrastructure.”
LAPP Insulators will continue to be led by its experienced management team with Dr. Bernhard Kahl as the chairman of the board. “The link to PFISTERER is a real plus,” said Kahl. “We can now offer our customers all the required products and services from a single source and forge our path of growth together.”
“Over the past few years we have built LAPP Insulators, with the support of the company’s management, into an integrated Group with a strong international business. With PFISTERER, we have gained a very well-positioned strategic investor with a far-reaching, and complementary product range” said Dr. Roland Egerer, the responsible partner at Quadriga Capital. “This allows LAPP Insulators to thrive and profit from the economies of scale and synergies of a strong group.”