The deal effectively creates an internationally competitive group with products for the entire forestry chain, from planting and scarification to clear-cutting and the logistics of handling raw material. It is also designed to increase Cranab’s production and exports.
Fassi, one of the world’s largest hydraulic crane producers, said the move was a reflection of future forestry sector growth forecasts.
Under the deal, Cranab – which makes forwarder cranes, harvester cranes and grapples – acquires control of Bracke Forest AB, a machinery manufacturer which focuses on scarifiers, planting equipment and felling heads.
This follows hot on the heels of Cranab’s October acquisition of forest machine producer Vimek.
The agreement will see Swedish investor Z-forestab AB invest equity in Cranab.
"The forestry sector is growing and will continue to do so in the future," said Fassi CEO Giovanni Fassi.
"For this reason we wanted to contribute to the foundation of one of the most important and diversified groups in the forestry sector, in collaboration with highly specialised partners, and in a country [Sweden] with vast technology applied to this context," said Mr Fassi.
"With this agreement we are adopting a more global approach with our new wide range of machinery linked to the forestry sector, driven by a greater demand for equipment suitable for sustainable environmental exploitation," said Cranab CEO Frederik Jonsson.
He said the new "world-leading group" of forest technology companies would create new opportunities for each business within the enlarged company.
Cranab has a turnover of around €40m (including Bracke Forest), while Fassi, which comprises five companies and 11 factories in Italy, expects to achieve a consolidated group turnover of around €125m in 2013.
