Paccar Buys Daf Trucks For 348.5m

Paccar, based in Washington state, is to pay Fl900 million for Eindhoven-based Daf and a further Fl32.9 million to buy out the 25 per cent minority in DAFs Belgian production unit which is owned by the Flemish regional government.

The Belgian and Dutch authorities, which together own just under half the company, still have to give their blessing. However, they are expected to back a deal securing Dafs future and possibly netting a windfall profit. The rest of Daf Trucks is owned by former creditor banks, suppliers and dealers, as well as other institutional investors. The price is five and a half times the groups earnings of Fl163.8 million.

 

Daf expects to match but not exceed that profit this year. Cor Baan, Daf chairman, said the sale would provide greater access to finance and technology as well as an international network. However, he said Daf would strengthen its focus on Europe, and maintain its contract under which it buys lighter vehicles from the UKs Leyland Trucks for sale on the continent.

The deal marks a further step in the rationalisation of the European truck business. The number of independent manufacturers has decreased steadily due to rising product development and marketing costs.