10/09/2020

HOMAG bundles its activities in the construction elements sector and acquires System TM A/S

Sustainable buildings made from wood — Schopfloch, Oct 9th, 2020. The HOMAG Group intensifies its activities in the new market segment Construction Elements Solutions by acquiring 80% of the shares of the Danish engineering and manufacturing company System TM A/S. System TM is a leading supplier of optimization and systems solutions for the timber processing industry. In 2019, the company generated an annual turnover of approx. 30 million euros with approximately 130 employees.

In addition to HOMAG’s focus on the furniture sector, a new business segment is being created within the HOMAG Group. The new segment, Construction Elements Solutions, will combine timber production and processing technology along with HOMAG’s existing activities. Earlier this year, HOMAG has already increased its stake in WEINMANN to 100%.

Pekka Paasivaara, CEO of HOMAG Group, explains: "We want to become a system supplier for the complete process chain in the area of construction elements, including cross-laminated timber (CLT). We are already in a good starting position. With System TM, we are acquiring an experienced, leading manufacturer with high-end products and a high reputation in project implementation."

Markus Vöge, Senior Vice President Sales and Marketing of the HOMAG Group, explains: "The business models of System TM and WEINMANN support the strategic goals in the area of sustainability. With wood as a renewable raw material, we can achieve eco-friendly buildings and healthy living environments. Additionally, the strategic partnership with Hundegger, which was initiated in 2019, will remain an important component of our new business segment.”

Jan J. Samuelsen, CEO of System TM: "The company founders and former majority shareholders, Poul and Ingrid Thøgersen, have decided that now is the right time to retire, and to bring the ownership to new shareholders, who believe in the business philosophy of System TM and support the positive development of the company further on. HOMAG is the ideal partner for us, because next to our existing business in cross-cutting and finger joining solutions, it will enable us to expand into the area of cross-laminated timber. We see a good growth potential in this business segment. The new setup for us is a logical step as we have already been cooperating with HOMAG in North America very successfully.”

Further on, the HOMAG Group expects the new business segment to extend economic potential from a double-digit million euro level to a low three-digit million euro range. Additional synergies in the technological field as well as in purchasing are expected.

 

Company background

The HOMAG Group is the world's leading provider of integrated solutions for production in the woodworking industry and woodworking shops. Its 14 specialized production sites, about 20 Group-owned sales and service companies and approximately 60 exclusive sales partners worldwide make the company a unique system provider. Backed by a workforce of some 6,600 employees the HOMAG Group offers its customers solutions for digitized production, based on digital data continuity from point of sale through the entire production process, combined with a comprehensive software suite. In addition, the open ecosystem "tapio" (open Internet-of-Things platform) maps the data flow along the entire value chain of the timber industry. The HOMAG Group has been majority-owned by the Dürr Group since October 2014.

System TM was founded in 1977 by Poul Thøgersen and is today a leading global supplier of automated high-end secondary solid wood processing systems. System TM is one of the largest suppliers for this sector in the world. The core competencies include everything from system design, installation, commissioning and training of personnel to service and maintenance. The latest technology, a unique project organization and a strong focus on close cooperation with the customer result in integrated solutions for every concrete need by optimizing processes and wood resources. System TM is headquartered in Odder, Denmark, and includes administration, production and assembly facilities. System TM employs approximately 130 highly qualified employees and has a strong network of partners and suppliers.

 

Disclaimer

This press release contains certain statements relating to the future. Future oriented statements are all those statements that do not pertain to historical facts and events or expressions pertaining to the future such as “believes”, “estimates”, “assumes”, “forecasts”, “intend”, “may”, “will”, “should” or similar expressions. Such future-oriented statements are subject to risks and uncertainty since they relate to future events and are based on current assumptions of the Company, which may not occur in the future or may not occur in the anticipated form. The Company points out that such future-oriented statements do not guarantee the future; actual results including the financial position and the profitability of the HOMAG Group as well as the development of economic and regulatory framework conditions may deviate significantly (and prove unfavorable) from what is expressly or implicitly assumed or described in these statements. Even if the actual results of the HOMAG Group including the financial position and profitability as well as the economic and regulatory framework conditions should coincide with the future-oriented statements in this press release, it cannot be guaranteed that the same will hold true in the future.

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