KUALA LUMPUR (Jan 12): Favelle Favco Bhd (KL:FAVCO) is acquiring French crane manufacturer Seram Industries SAS for between €7.5 million and €10 million (RM35.6 million and RM47.5 million), cash.

Seram is a wholly-owned subsidiary of Marec Industrie SAS, a firm jointly owned by its directors Joaquin Semis and Andrée Nee Vinas Semis. Seram is known for its patented hydraulic balancing crane system which reduces energy consumption and delivers efficient lifting solutions for the global recycling and industrial waste management sector. Besides manufacturing, it also designs, installs, trains and maintains lifting cranes and electric conveyors for industrial waste plants. For the financial year ended Dec 31, 2024, Seram made a net profit of €1.76 million on revenue of €18.75 million.

Favelle Favco’s board said the proposed acquisition will strengthen the group’s product portfolio and align with its long-term strategy to expand lifting solutions and automated heavy equipment offerings. By integrating Seram’s patented technology and engineering expertise, Favelle Favco expects to gain a strategic foothold in the industrial waste and recycling equipment market while enhancing technical capabilities, operational efficiency and global competitiveness. The deal is expected to create cross-selling opportunities, operational synergies and broaden the group's earnings base and market presence.

Favelle Favco plans to fund the purchase using internal funds. As at Sept 30, 2025, the group had cash holdings of RM219.92 million against total borrowings of RM107.34 million.

The acquisition, expected to be completed by Jan 31, 2026, does not require shareholder or regulatory approval, nor is it conditional upon any other corporate proposals.

On Monday, Favelle Favco’s shares closed up one sen or 0.6% at RM1.56, giving the group a market capitalisation of RM370 million. The stock has dipped 8.7% over the past one year.