Husqvarna Group’s Construction Division, with U.S. headquarters in Olathe, Kansas, has signed an agreement to acquire the Floor Grinding Solutions Division of HTC Group AB, a manufacturer of floor grinding solutions with U.S. headquarters in Knoxville, Tennessee.
“We have previously communicated the ambition to grow our Construction Division. The acquisition of HTC is an important step on that journey and, together with the recent acquisitions of Pullman Ermator and Diamond Tool Supply, is seen as an expression of that goal. Combined, these acquisitions give us a strong position in the fast growing and attractive surface preparation market,” says Kai Wärn, president and CEO of Husqvarna Group.
“The combination of HTC and Husqvarna Construction will create a strong platform to educate floor owners and architects about the benefits of polished concrete floors and increase the preference of this flooring solution. Through the acquisition, we will strengthen our ability to develop and offer customers the best total solutions for the segment,” says Henric Andersson, president of Husqvarna Construction.
Sales for HTC Floor Grinding Solutions in 2016 amounted to approximately $4,247,034. The 150 employees are mainly located in Sweden and in the fully-owned subsidiaries in France, Germany, United Kingdom (U.K.) and the U.S, which also are the biggest markets in terms of sales. HTC is currently owned by Polaris, a leading Nordic private equity company.
“The HTC team brings extensive floor grinding product and application expertise, combined with Husqvarna’s global reach and scale, gives us a stronger position to grow the polished flooring market and help our customers to achieve beautiful and easily maintained floors at lower environmental impact. Together we will also explore synergies in areas including sourcing and technology,” says Andersson.
Further details will be announced closer to the finalization, which is expected by mid-year. The acquisition of HTC Floor Grinding Solutions is subject to approval from competition authorities and the impact on Husqvarna Group’s earnings in 2017 will be limited.