Ponsse Group will be in the future responsible itself for the sales, spare parts and service business in Chile through its newly established subsidiary Ponsse Chile SpA. To this end, Ponsse and its local retailer F.C. Ventas Y Servicios Limitada have signed an asset purchase agreement related to Ponsse’s forest machine operations, according to which Ponsse Chile SpA will purchase FC Ventas’ service centre located in Chillan, including its spare parts stocks and maintenance vehicles, subject to the fulfilment of certain conditions. The aim is that PONSSE services in Chile will transfer to Ponsse Group by the end of 1Q 2022.
The employees of F.C. Ventas will join Ponsse Group as established employees after the transaction has been completed. Ponsse has prepared a comprehensive integration plan that will ensure a positive continuation of the local business and sufficient orientation for the employees.
The transaction has no impact on the previous guidance, which suggests that Ponsse Group’s operating result is estimated to be significantly higher than in 2020. Currently, Ponsse’s business in Chile amounts to approximately Euro 10 million. The purchase price of the transaction between FC Ventas and Ponsse will not be made public by mutual agreement. Furthermore, the purchase price has no impact on the valuation of Ponsse. The purchase price will be paid in cash subject to the fulfilment of certain conditions set for the completion of the transaction. Ponsse will fund the acquisition from its cash assets.
PONSSE forest machines have a market share of about 40 per cent of cut-to-length machines in Chile, and there are 150 PONSSE forest machines in the country. Further machine deliveries are expected as cut-to-length harvesting grows in popularity.
Ponsse Chile SpA will join Ponsse’s other South American subsidiaries in Uruguay and Brazil.
Ponsse Plc is a company specialising in the sales, manufacture, servicing and technology of cut-to-length method forest machines.
