Hay Lift Acquires Skyline Cranes for $92 Million

In a significant move within the construction equipment sector, Hay Lift, a prominent player in vertical transport solutions for building sites, has secured a controlling stake in Skyline Cranes. The acquisition, valued at approximately $92 million (NIS 340 million), positions Hay Lift to significantly expand its service offerings and market reach. The deal sees Baruch Parans, the founder of Skyline Cranes, divest his majority ownership, marking a substantial exit for the entrepreneur.

The transaction involved Hay Lift acquiring 75% of Skyline Cranes, a company specializing in tower and hoisting cranes for construction contractors. This strategic integration aims to create a comprehensive "one-stop shop" for vertical transportation needs on construction sites. Skyline Cranes reported robust financial performance, concluding 2023 with revenues of approximately $46 million (NIS 172.4 million) and a net profit of around $5.7 million (NIS 21.5 million), underscoring the value of the acquired asset.

Fueling this acquisition, Hay Lift secured a crucial investment of $18 million (NIS 67 million) from an institutional investor, which will receive a 20% equity stake in Hay Lift, valuing the company at approximately $72 million (NIS 270 million) pre-money. Furthermore, the institutional investor provided a $10.7 million (NIS 40 million) loan, partially convertible into equity. Complementing this, Hay Lift secured a substantial $53 million (NIS 200 million) loan facility from Bank Hapoalim, to be repaid over 7.5 years, facilitating the operational integration and future growth initiatives.

This influx of capital and the acquisition itself represent a significant valuation uplift for existing Hay Lift shareholders, including founder and CEO Yaron Zoltzer, a consortium of construction industry partners led by Amnon Amar, and the public infrastructure company Alma Yesodot. Alma Yesodot, controlled by the Mirilashvili family, had previously invested in Hay Lift in 2021 at a valuation of roughly $25 million (NIS 95 million), indicating a near threefold increase in the company's valuation in a relatively short period.

The consolidation of these two entities is expected to unlock considerable synergies within Israel's dynamic construction sector, which is a key driver of the nation's economic activity. The market for construction equipment rental and services is competitive, with demand closely tied to infrastructure spending and real estate development trends. By combining Hay Lift's expertise in personnel and material hoists with Skyline Cranes' extensive tower crane fleet, the merged entity is well-positioned to capture a larger share of this market.

Baruch Parans, the departing founder of Skyline Cranes, expressed confidence in the future of the combined entity, stating, "The responsibility of a founder extends beyond achieving success; it also involves recognizing the opportune moment to propel the company into its next phase. I am confident that the synergy with Hay Lift will enable continued development from a strong foundation, reaching new operational scales."

Yaron Zoltzer, CEO of Hay Lift and incoming Chairman of Skyline Cranes, highlighted the strategic importance of the merger. "Skyline Cranes is an exceptional company, a leader in its field with outstanding personnel, deep expertise, and a long-standing reputation. This union transcends a mere expansion of our service portfolio; it's a strategic alignment of two complementary professional platforms, bringing us closer to our vision of a comprehensive solution for all vertical transport needs on construction sites. We foresee significant potential for growth, investing in capabilities, technology, and service, thereby generating greater value for our clients while upholding safety as our paramount principle."