KUALA LUMPUR (April 10): Favelle Favco Bhd (KL:FAVCO) on Friday said it has completed its acquisition of French crane manufacturer Seram Industries SAS.
The group had earlier agreed to acquire Seram for between €7.5 million and €10 million (RM35.6 million and RM47.5 million), in a cash transaction.
Seram is a wholly-owned subsidiary of Marec Industrie SAS, which is controlled by its directors Joaquin Semis and Andrée Nee Vinas Semis. The French company specialises in hydraulic balancing crane systems designed to improve energy efficiency and lifting performance, primarily serving the industrial waste and recycling sector. It is also involved in the installation and maintenance of cranes and conveyor systems used in waste treatment facilities.
For the financial year ended Dec 31, 2024, Seram recorded a net profit of €1.76 million on revenue of €18.75 million.
Favelle Favco previously said that the acquisition is expected to broaden its product range and support its strategy to expand into more automated and specialised heavy lifting equipment. The group also expects the deal to enhance its technical capabilities and create cross-selling opportunities across its global operations.
The purchase was funded using internally generated funds. As at Sept 30, 2025, Favelle Favco held cash of RM219.92 million against borrowings of RM107.34 million.
AskEdge data shows Favelle Favco currently trading at a price to earnings ratio of 7.6 times, which is the lowest among peers where the ratio is applicable (not loss-making or insufficient data).
This PE ratio is at the lower end compared to its historical valuation in recent years.
The group's price to net asset ratio of 0.5 times is below peers' average and is currently at its lowest level in recent years.
Favelle Favco shares closed flat at RM1.60 on Friday, valuing the group at RM379.5 million.