JOST

Activity
Truck component manufacturer
Acquired
Aug 2008
Sector
Industrials

Business
JOST is a leading global producer of systems, modules and components for connecting trucks and trailers. Established in Germany in 1952, JOST today employs approximately 2,100 people in 20 countries. The company has developed into a truly global leader with a strong presence in rapidly growing markets such as Eastern Europe, China, India, Russia and Brazil.

The global transportation market is expected to deliver secular long-term growth based on positive demand drivers which will continue to increase freight volume. These drivers include the ongoing globalisation of manufacturing and trading and the improving infrastructure in growth regions including Eastern Europe and Asia. JOST’s products focus on articulated trucks and semi-trailers, where – as opposed to rigid trucks – truck and semi-trailer can be de-coupled. The articulated segment is particularly attractive given higher efficiency, larger loading space and increased flexibility.
 
Strategy
JOST is a market leader whose brands stand for quality and safety. Its long-term growth is underpinned by the expansion of truck fleets in Eastern Europe and Asia, with global transportation volumes expected to grow at attractive rates through the cycle.

Cinven’s strategy for JOST includes (i) continued expansion into developing economies leveraging off the growth in Eastern Europe, Russia, India, China and Brazil; (ii) acquiring companies in complementary product lines to generate cross-selling and synergy potential, continuing JOST’s successful track record of executing and integrating acquisitions; and (iii) developing the company’s operational systems and organisational set up as it continues to grow.

Progress
The global financial crisis had an unprecedented impact on the trucking industry, severely affecting JOST. In response to the fall in demand for heavy trucks, Cinven and JOST management swiftly embarked on addressing the changed environment by implementing a series of rigorous and wide ranging initiatives to preserve and protect value, including:

  • working with management to restructure the company to weather the economic downturn;
  • making improvements in the company’s operations and financial systems;
  • continuing to build JOST’s market position and expand into underpenetrated, high-growth geographies (e.g. China, India, and Eastern Europe); and
  • re-negotiating financing agreements and completing the debt restructuring in January 2011.

After the successful implementation of these initiatives, JOST managed to overcome the crisis. The Company recovered rapidly, supported by catch-up effects in the market, and has returned to its original growth track.

In July 2017, Cinven completed the private placement of JOST on the Frankfurt Stock Exchange. Cinven’s Fourth Fund continues to hold a nominal stake in the business.