GlobeNewswire by notified

Hexatronic acquires leading microduct business KNET for an expected USD 63 million

Share

Press release
November 24, 2022
Gothenburg, Sweden

Hexatronic acquires leading microduct business KNET for an expected USD 63 million

Hexatronic Group AB (publ) (“Hexatronic”) has entered into a definitive agreement to acquire KNET CO., LTD (“KNET”) - one of the global leaders within microduct solutions for the telecommunication industry - for an expected enterprise value of USD 63 million.

KNET

KNET is a global leader and pioneer in the development and manufacturing of microduct solutions for the telecommunication industry. Since 2002 the company has delivered to more than 70 countries on 5 continents. Today the main markets are North America followed by Europe and Asia.

KNET is headquartered in Seoul and has a manufacturing plant in Jeongeup-si in the Southern part of South Korea. The company also has offices in the US and Indonesia. The acquisition also includes the land and buildings of the production plant.

KNET will post-closing operate as an independent company with the existing management team and will continue to serve all existing customers under the KNET brand.

The seller who also is the founder will continue in his current position as the chairman for KNET.

Overview of the transaction

The purchase price for KNET is a fixed enterprise value of USD 48 million plus a potential earn-out based on the accumulated EBITDA for the 36-month period post-closing. The potential earn-out is estimated to USD 15 million.

For the current year, ending December 31st, KNET is expected to generate an EBITDA of more than USD 10 million. This represents a fixed transaction multiple of approximately 4.6x and an expected transaction multiple, including earn-out, of approximately 6.1x.

The maximum earn-out amounts to USD 36 million and is achieved if KNET performs an accumulated EBITDA for the 36-month period of more than USD 63 million. If the accumulated EBITDA for the same period is less than USD 27 million no earn-out will be paid out.

The fixed purchase price of USD 48 million is to be paid in cash at closing, fully financed with senior debt. The third quarter pro forma Net Debt-to-EBITDA ratio for the Hexatronic Group, following the transaction, including previously announced transactions, is expected to be about 1,8. The acquisition is immediately accretive to earnings and is expected to add 0.28 SEK per Hexatronic share on an annual basis.

The acquisition is expected to close December 1, 2022.

Comments from Hexatronic CEO

“We are very pleased to have reached an agreement to acquire KNET. We have been working with the highly skilled team of KNET for more than 10 years and are impressed with the product quality and innovation capabilities. Throughout the years KNET has been an important partner to Hexatronic. Both as a volume supplier managing peaks in demand, but also for products with high technical requirements. The strong support of KNET has been crucial for our strong growth and recent success in North America. Hexatronic is today the largest customer of KNET.

We look forward to welcoming the dedicated team of KNET to Hexatronic Group. The technical and innovation capabilities will add great value to Hexatronic. In addition, we will get access to a high quality and high-volume production plant strategically located to serve our businesses in North America, Europe and Oceania”, says Henrik Larsson Lyon, CEO of Hexatronic Group.

Comments from KNET Chairman

"Hexatronic has been a long-term strategic partner to KNET and it is a natural and exciting development to join Hexatronic Group. We look forward to continuing to support all our existing customers as well asHexatronic’s ambitious growth aspirations in its key markets”, says Seo Seong Nam, founder and Chairman of KNET.

Advisor
White & Case and Shin & Kim has acted as legal counsels for the acquisition of KNET.

Gothenburg, November 24, 2022

Henrik Larsson Lyon
CEO Hexatronic Group

For more information, please contact:
Henrik Larsson Lyon, CEO Hexatronic Group, +46 706 50 34 00
Pernilla Lindén, CFO Hexatronic Group, +46 708 77 58 32

This is information that Hexatronic Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CET on 24November 2022. This is a translation of the Swedish version of the press release. When in doubt, the Swedish wording prevails.

Hexatronic creates sustainable networks all over the world. We partner with customers on four continents – from telecom operators to network owners – and offer leading, high-quality fiber technology for every conceivable application. Hexatronic Group (publ.) was founded in Sweden in 1993 and the Group is listed on Nasdaq OMX Stockholm. Our global brands include Viper, Stingray, Raptor, InOne, and Wistom®.

Attachment

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.

About GlobeNewswire by notified

GlobeNewswire by notified
GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://notified.com

GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire by notified

Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire by notified

Telesis Bio Reports Fourth Quarter and Full Year 2023 Financial Results28.3.2024 21:05:00 CET | Press release

SAN DIEGO, March 28, 2024 (GLOBE NEWSWIRE) -- Telesis Bio Inc. (NASDAQ: TBIO), a leading provider of RNA and DNA solutions enabling researchers to accelerate therapeutic discovery through advanced, flexible, and rapid automated synthesis in their own lab, today announced financial results for the fourth quarter and year ended December 31, 2023. Results highlight strong BioXp® kit sales, expanding gross margin and reduced operating expense. In discussing the results, Todd R. Nelson Ph.D., Founder and CEO of Telesis Bio said, “I’m pleased with our operating execution in a challenging macro environment during 2023. Our company experienced record BioXp kits sales and expanding gross margin against the backdrop of significant cost cutting initiatives undertaken to align our operating structure with our strategic vision for growth. We believe that our rapid and flexible mRNA synthesis kits are game-changing and unlock tremendous value by providing customers control over their screening and d

Galapagos publishes 2023 annual report and announces Annual and Extraordinary Shareholders’ Meetings28.3.2024 21:01:00 CET | Press release

Publication of annual report for financial year 2023Annual Shareholders’ Meeting resolutions include approval of revised Remuneration Policy and (re)appointment of Board membersExtraordinary Shareholders’ Meeting resolutions include approval of renewal of authorized capital and issuance of Gilead Subsequent Warrant B Mechelen, Belgium; 28 March 2024, 21.01 CET; regulated information – Galapagos NV (Euronext & NASDAQ: GLPG) today publishes its annual report for the financial year 2023 and announces its Annual and Extraordinary Shareholders’ Meetings (AGM and EGM) to be held sequentially on Tuesday, 30 April 2024 at 2:00 pm (CET) and 3:00 pm (CET), respectively, at the registered office of the Company. The annual report for the financial year 2023, including a review of figures and performance, is available online at https://www.glpg.com/financial-reports and can also be downloaded as PDF. Our annual 2023 Form 20-F filing with the SEC is available at www.sec.gov/edgar. Galapagos has the

McWhorter Foundation Preparing Legal Battle Against J.P. Morgan Over IPO Discrimination and LBO Biases28.3.2024 19:28:47 CET | Press release

PALM BEACH, Fla., March 28, 2024 (GLOBE NEWSWIRE) -- McWhorter Foundation is poised to launch a groundbreaking legal battle against financial giant J.P. Morgan. With a focus on challenging discriminatory practices in leveraged buyouts (LBOs) and initial public offerings (IPOs), The McWhorter Foundation aims to break down barriers and advocate for equal access to capital markets. Exposing Inequities in IPOs: Recent analyses have highlighted disparities in IPO access, with minority-owned businesses facing systemic hurdles in accessing public markets. McWhorter's legal challenge will illuminate these inequities, compelling J.P. Morgan to address its role in perpetuating barriers to entry for underrepresented entrepreneurs. Leveraging Data for Change: Backed by comprehensive data and extensive research, McWhorter's legal team will present compelling evidence of discrimination in J.P. Morgan's IPO practices. By highlighting patterns of exclusion and unequal treatment, McWhorter Foundation s

Oxurion Receives Transparency Notification from Atlas Special Opportunities LLC28.3.2024 19:00:00 CET | Press release

Oxurion Receives Transparency Notification from Atlas Special Opportunities LLC Leuven, BELGIUM – March 28, 2024 – 07:00 PM CET Oxurion NV (Euronext Brussels: OXUR), a biopharmaceutical company headquartered in Leuven, today announced that, pursuant to Belgian Transparency legislation1 it has received transparency notifications as follows: Oxurion received a transparency notification on March 27, 2024, from Atlas Special Opportunities, LLC indicating that as of March 19, 2024, it held 0 (zero) shares of the then outstanding 5,753,951,723 shares, and therefore crossed below the threshold (3%) by virtue of the sale of voting securities. See Annex 1. About Oxurion Oxurion (Euronext Brussels: OXUR) is engaged in developing next-generation standard of care ophthalmic therapies for the treatment of retinal disease. Oxurion is based in Leuven, Belgium. More information is available at www.oxurion.com. Important information about forward-looking statements Certain statements in this press rele

C.K. McWhorter: Running to a Solution Of Equality and Sustainability28.3.2024 18:48:29 CET | Press release

MIAMI, March 28, 2024 (GLOBE NEWSWIRE) -- In a groundbreaking endeavor, C.K. McWhorter, renowned for his pioneering spirit in luxury and finance, is embarking on a transformative journey to reshape the narrative of desirability. By harnessing the allure of luxury, McWhorter aims to catalyze a paradigm shift towards equality and sustainability, ensuring that these principles become the most coveted and revered ideals worldwide. With a profound understanding of the power of influence, McWhorter recognizes that luxury sets the standard for aspiration and desire. Leveraging this influence, he seeks to redefine what it means to truly desire and value, shifting the focus from just material possessions to ethical principles that benefit humanity and the planet. "Luxury has long been synonymous with opulence and exclusivity, but it's time for us to redefine its meaning," says McWhorter. "True luxury is in equality and sustainability – in knowing that our desires are aligned with values that up

HiddenA line styled icon from Orion Icon Library.Eye