Schaeffler strengthens industrial business with Ewellix acquisition

Schaeffler has signed an agreement for the acquisition of the Ewellix Group, with the aim of strengthening its own market position, particularly in the linear business.

Ewellix is a market leader in multiple areas of technology, including electromechanical industrial actuators and lifting columns, as well as roller screws. These products are used in sectors such as robotics and medical technology and in mobile machinery. The Ewellix Group’s product range is highly complementary to the existing product portfolio in Schaeffler’s Industrial division.

Ewellix’s sales and R&D teams and its six production and customizing sites – which together have a combined workforce of around 1,200 – constitute a strong business unit and will work closely with the Schaeffler Industrial team to realize synergies.

“By acquiring Ewellix, we are further strengthening our industrial business and are continuing to follow through on our strategy despite these volatile times,” said Schaeffler chief executive officer Klaus Rosenfeld. “This acquisition represents a further step in the diversification of our business as a global automotive and industrial supplier and will put us in an even stronger position to invest in attractive growth markets. The deal is another key milestone that will make the Schaeffler Group even better prepared for the future.”

Linear technology promises to be a major driver of growth within the global industrial technology business over the coming years. The shared focus in this area is on high-growth sectors of the market, such as industrial automation, robotics, medical technology, the food and drinks industry, and mobile machinery.

Ewellix is a global company headquartered in Gothenburg, Sweden. Formerly the linear technology arm of SKF, it was acquired by the investment firm Triton in 2018 and repositioned as a stand-alone company under the Ewellix brand. Its core products include actuators, lifting columns, robot range extenders, ball and roller screws, and linear guides (monorail guidance systems and linear ball bearings). These products are used in a wide range of applications and equipment types, including medical technology, mobile machinery, assembly automation, robotics, and various other areas of industry.

“By acquiring the Ewellix Group, we are significantly expanding our industrial division’s linear technology footprint, particularly in areas of strategic importance for the future,” said Dr Stefan Spindler, CEO for the industrial business at Schaeffler. “I am familiar with Ewellix and know it to be a very well-run business unit with a strong customer and sales focus backed by solid product development. Consequently, the company has a rich pipeline of highly innovative solutions and customer projects.

“We will support the Ewellix team in the implementation of their bold growth plans. We will leverage synergies at every step of the way and partner with them to further develop the manufacturing systems at their production units.”

The purchase price for the acquisition, which will take the form of a share deal, is approximately EUR 582 million. This amount does not include the net debt of Ewellix of approximately 120 Million Euro which will be assumed by Schaeffler, nor does it include transaction costs. The purchase price will be paid from existing internal and external financing sources. The deal is expected to lead to an improvement in Schaeffler’s earnings per share in the mid-single digit percentages by as early as 2024.

The closing of the purchase agreement is subject to market customary closing conditions with regard to merger control and foreign direct investment clearances. Closing is expected to occur by the end of 2022.