Driving Toward Vision 2025
Achieve global technology leadership in the industrial goods sector by 2025 with critical mass
$1 Billionin sales by 2025
while maintaining superior profitability & financial strength
Acquisition of Faster Group
In the second quarter of 2018, SNHY acquired Faster Group, a leading global manufacturer of quick-release hydraulic couplings headquartered in Milan, Italy. Strategically for SNHY, this represents an extension of Sun’s current hydraulics product offering and expands our global reach. Faster’s primary end markets include agriculture, construction equipment and general industrial applications. Their strong engineering and manufacturing presence in Europe and access to trend-setting global OEMs will significantly expand both our Hydraulics and Electronics opportunities.
This acquisition fits very well with our Vision 2025. It advances our global technology leadership position in the industrial goods sector and maintains our superior profitability and financial strength. Faster recorded 2017 sales of €105 million (approximately $130 million) and an adjusted EBITDA margin of 27.5%. We anticipate higher SNHY earnings in 2018 as a result of this acquisition.
Since its inception, Sun has occupied a leadership position in high-performance, high-reliability hydraulic components and systems for transmitting fluid power to control force, speed and motion. Sun’s products are known globally for providing precise, safe and reliable operation of machinery and equipment in highly diversified markets.
We are currently targeting key market demands in hydraulics that are driving our product development in the near term, toward our Vision 2025 goals:
- Increased productivity and performance
- Improved safety and reliability
- Adoption of electro-hydraulic actuation and tuning
- Reduced noise and vibration
- Zero leaks
- More environmentally sensitive solutions
As we move forward into smarter components and more intelligent control systems, our teams are looking beyond cartridge valve design and at opportunities in systems and more highly integrated electro-hydraulic solutions. With new products released in 2017 that move Sun more solidly in that direction and with more joint development between our Hydraulics and Electronics teams, we expect to see rapid growth in these areas in all regions as more customers demand digital controls, smart hydraulics and greater integration with linked technologies.
In addition to investments to advance our current areas of Hydraulics expertise, we seek acquisitions to complement our current portfolio, including product adjacencies and geographic expansion.
Long known as an industry leader for cutting-edge electronic control technology, Enovation Controls conquers complex system challenges for engines and equipment by rapidly leveraging our product platforms and expertise. Serving diverse markets through our Murphy, Zero Off and High Country Tek brands, we immerse ourselves in our customers’ worlds to deliver remarkable, integrated solutions.
The Electronics segment is making key investments to drive toward its Vision 2025 goals:
- Intense focus to replicate success in the specialty vehicles markets for the off-highway OEM space
- Successful completion of complex acquisition transition goals ahead of schedule
- Multi-million dollar investment to expand manufacturing capabilities
- Revitalization of distribution network by leveraging Sun Hydraulics’ best sales channel partners
- Ongoing investment in new innovative products, keeping pace with technological advances
2017 saw the first joint product launch between the Hydraulics and Electronics segments, which was very well received in the marketplace. As we continue to develop connected, intelligent controls, key to our growth strategy is leveraging the synergies between Electronics and Hydraulics to pursue common customers with a combined system solution.
This effort is keenly focused in targeted expansion markets (APAC and India) and will drive growth for Enovation Controls in segments where Sun Hydraulics enjoys high market share.
While we are focused on organic growth opportunities, we also seek acquisitions to complement our current portfolio, including broadening our electronic controls and instrumentation portfolio as well as expanding our geographic reach.
Vision 2025: Pathway to Superior Growth
* 2017PF is pro forma to reflect the combination of 2017 actual SNHY and Faster results