Kitron acquires Danish EMS provider, expands geographic footprint
(2021-12-20) Kitron has entered into an agreement to acquire Danish EMS company BB Electronics A/S, which has production facilities in Denmark, China and the Czech Republic. The deal is clearly earnings accretive and adds significant shareholder value.
"BB Electronics gives us a solid position in one more Nordic country and extends Kitron’s footprint in CEE and China. The acquisition also provides a pathway to establishment in India. BB Electronics has well-run and highly automated manufacturing operations serving a loyal long-term customer base. Its position within higher-complexity segments fits perfectly with Kitron's strategy," said Peter Nilsson, President and CEO of Kitron.
“We're impressed with the track record of the BB team and look forward to working together.
We expect BB Electronics to continue with very little change. BB CEO Carsten Christensen will join the Kitron Group management, maintaining current responsibilities. We expect the transaction to be immediately earnings accretive for Kitron, while also supporting our growth strategy," said Mr. Nilsson.
Founded in 1975, BB Electronics is a full-service EMS (Electronics Manufacturing Services) provider based in Horsens, Denmark. The group has revenues of about DKK 1,000 million in 2021 and about 750 employees and has over the past years grown significantly, both organically and through M&A. The customer base is concentrated within industry, telecom and medical.
"We believe the match with Kitron is excellent and provides an even stronger platform for BB Electronics, including a North American manufacturing presence, which is in strong demand from our existing customer base. We look forward to executing on our growth strategy under the Kitron umbrella," said Carsten Christensen, CEO of BB Electronics.
"The European EMS industry is highly fragmented, and we're convinced that we will be even stronger together as we leverage our individual strengths to continue both companies’ track records of profitable growth," added Mr. Nilsson.
- Kitron will acquire 100 percent of the shares of BB Electronics A/S from BB Electronics Holding ApS, which is owned by external investors as well as BB Electronics management for a total of DKK 600 million (approximately NOK 822 million), on a debt- and cash-free (Enterprise Value) basis.
- The acquisition includes all operations and assets of BB Electronics, inter alia in Denmark, the Czech Republic and China.
- BB Electronics is highly complementary to Kitron, adding operations in jurisdictions where Kitron currently has a limited presence.
Key strategic benefits
- The acquisition will provide Kitron with a strategic geographical expansion, establishing a presence and gateway in Denmark, an additional Nordic country. Further, Kitron will have a strengthened presence in CEE with a site in the Czech Republic, a pathway to establishment in India and increased footprint and added capacity and capabilities in China.
- The acquisition provides opportunities for synergies. Following completion, Kitron expects to increase its competence and offering within production automation and sees new opportunities for efficiency improvements.
- Existing BB Electronics customers may benefit from Kitron's US operations, providing a broader customer base for the combined group.
- Valuable management resources will add to Kitron and profitable contribution to Kitron is expected from day 1 following completion.
- In summary, the acquisition is anticipated to be clearly accretive to Kitron.
- BB Electronics has estimated revenues of approximately DKK 1,000 million (approximately NOK 1,370 million) in 2021. Over the same period, the company has an estimated operating profit (EBIT) of approximately DKK 66 million (approximately NOK 90 million).
- Kitron has established a term loan facility with DNB Bank ASA, has available revolving credit facilities and received binding offers for debt financing of the acquisition. Kitron expects to enter into agreements for relevant debt financing of the acquisition in due course prior to closing and may also consider equity financing in relation to funding of the acquisition. There are no financing conditions for the acquisition.
- BB Electronics had net debt of DKK 54.2 million as of 30 September 2021, and as of the same period Kitron had net debt of NOK 791 million.
- The acquisition offers an attractive opportunity to create significant value for Kitron's shareholders and is expected to deliver returns well above Kitron's cost of equity and be clearly accretive to underlying earnings.
- Through the addition of high quality, long-term earnings, the transaction further diversifies Kitron's cash flows and strengthens Kitron's ability to accelerate further growth.
The transaction is conditional upon customary closing conditions and is expected to be completed January 2022. Until then, the two companies will continue to operate as separate entities. Integration preparations will start immediately upon closing.
Sparebank 1 Markets AS is acting as financial advisor and Advokatfirmaet Selmer AS as legal advisor to Kitron. In addition, Ernst&Young has been engaged to carry out financial due diligence, and Bird&Bird has carried out legal due diligence in Denmark, the Czech Republic and China.
Invitation to webcast
Kitron will host an online presentation of the transaction at 10:00 CET tomorrow, 21 December. The presentation can be accessed here: https://channel.royalcast.com/landingpage/hegnarmedia/20211221_1/
A presentation is attached with this announcement.
For further information, please contact:
Peter Nilsson, President and CEO, tel. +47 94 84 08 50
Cathrin Nylander, CFO, tel: +47 900 43 284
Kitron is a leading Scandinavian electronics manufacturing services company for the Connectivity, Electrification, Industry, Medical devices and Defence/Aerospace sectors. The company is located in Norway, Sweden, Lithuania, Germany, Poland, China and the United States. Kitron had revenues of about NOK 4.0 billion in 2020 and has about 1 800 employees. www.kitron.com
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock exchange announcement was published by Cathrin Nylander, Chief Financial Officer of Kitron ASA on 20 December 2021 at 21:50 CET.
This announcement is not and does not form a part of any offer to sell, or a solicitation of an offer to purchase, any securities. The distribution of this announcement and other information may be restricted by law in certain jurisdictions. Copies of this announcement are not being made and may not be distributed or sent into any jurisdiction in which such distribution would be unlawful or would require registration or other measures. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions.
Matters discussed in this announcement may constitute forward-looking statements. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “strategy”, “intends”, “estimate”, “will”, “may”, “continue”, “should” and similar expressions. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although Kitron believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control.
The information, opinions and forward-looking statements contained in this announcement speak only as at its date, and are subject to change without notice. Kitron undertakes no obligation to review, update, confirm, or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this announcement.
This announcement is for information purposes only and is not to be relied upon in substitution for the exercise of independent judgment. It is not intended as investment advice and under no circumstances is it to be used or considered as an offer to sell, or a solicitation of an offer to buy any securities or a recommendation to buy or sell any securities of Kitron. Neither Kitron, SpareBank 1 Markets AS nor any of their respective affiliates accepts any liability arising from the use of this announcement.
AttachmentTo 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
One Liberty Plaza - 165 Broadway
NY 10006 New York
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
FutureDial Automation Solutions Process Over 231 Million Preowned Mobile Phones Worldwide25.1.2022 14:30:00 CET | Press release
Growing adoption of FutureDial’s robotics and automation software by Wireless Carriers, Third-Party Logistics Providers (3PLs) and Mobile Device Recyclers led to explosive volumes of preowned iPhones and Android Smartphones being processed for resale in 2021 SUNNYVALE, Calif., Jan. 25, 2022 (GLOBE NEWSWIRE) -- FutureDial Incorporated continued its commanding lead in providing mobile device processing solutions for Wireless Carriers, Mobile Device Buy-Back & Trade-In Companies, Mobile Phone Recyclers and Third-Party Logistics Providers (3PLs) during the year, announcing that its robotics and automation software solutions have been used by customers in the mobile supply chain to data clear, functionally test and grade a cumulative total of over 231.4 Million pre-owned Android smartphones and iPhones worldwide, for resale on secondary markets. Additionally, the total number of functional tests using FutureDial software and robotics for quality assurance performed on preowned iPhones and A
HMNC Brain Health Expands International Patent Portfolio with Two Stress-axis Related Substances for Major Depressive Disorder25.1.2022 14:30:00 CET | Press release
In-Licensing arrangement with the renowned Max Planck Society, extends patent protection for clinical research and strengthens Nelivabon and Cortibon developmental projects The Company has also established an office in the United States, furthering global expansion strategy MUNICH, Germany, Jan. 25, 2022 (GLOBE NEWSWIRE) -- HMNC Brain Health, (“HMNC” or the “company”), a clinical stage biopharmaceutical company pioneering the development of personalized therapies in psychiatry, announced that it has expanded its international patent portfolio in the field of psychiatric therapy with two patent families claiming substances for treating stress-axis related Major Depressive Disorder. These license agreements are part of a broader collaboration with the renowned Max-Planck-Society, comprising biomarker patent claims and therapeutic patent claims covering markets in Europe, the U.S., and now Asia, in particular Japan. Utilizing a more personalized approach to discovering new drugs in psychi
Mandalay Resources fortsätter att presentera utmärkta resultat från utvidgningsborrningen i Björkdalsgruvans östra del25.1.2022 14:25:01 CET | Pressemelding
Ådror med synligt guld och höga halter indikerar en uppgradering på djupet i Björkdal TORONTO, Jan. 25, 2022 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation (”Mandalay” eller ”bolaget”) (TSX: MND, OTCQB: MNDJF) har nöjet att meddela en uppdatering om utvidgningsborrningen i de östra delarna av Björkdalsverksamheten i Sverige. Nya borrningshöjdpunkter: Utvidgning av centrala området 47,7 g/t guld över 11,7 m (uppskattad sann bredd ”ETW” 5,85 m) i MU21-052: Inklusive 1 056,0 g/t över 0,40 m;47,5 g/t guld över 6,4 m (ETW 4,11 m) i MU21-047: Inklusive 716,0 g/t över 0,31 m; och507,0 g/t guld över 0,45 m (ETW 0,23 m) i MU21-051. Utvidgningstestning av centrala området 45,5 g/t guld över 2,3 m (ETW 1,15 m) i MU21-028;83,1 g/t guld över 0,4 m (ETW 0,39 m) i MU21-029;8,4 g/t guld över 5,7 m (ETW 5,35 m) in MU21-030; och5,1 g/t guld över 8,0 m (ETW 6,13 m) i MU21-031. Centralt område – Länk till Lake-området 13,2 g/t guld över 1,0 m (ETW 0,94 m) i MU21-028; och19,3 g/t guld över 0,4 m (ETW 0
Exterro Announces Significant Industry Promotion of its Document Review Platform25.1.2022 14:00:00 CET | Press release
Latest Version of Revamped Exterro Review Platform Optimized for Entire Legal Ecosystem; Limited-Time Only Promotion offers up to 6-Months Free Use of Platform PORTLAND, Ore., Jan. 25, 2022 (GLOBE NEWSWIRE) -- Exterro Inc. – the preferred provider of Legal GRC software specifically designed for in-house legal, privacy, and IT teams at Global 2000 and AmLaw 200 organizations – today announced, for a limited-time only, a promotion of up to 6 free months and 5 terabytes of data storage of its Review platform. The promotion coincides with Exterro’s ongoing build out of its Review business unit and updated feature capabilities that are now available to the entire legal ecosystem, including legal service providers, law firms and corporate clients. Furthermore, the promotion of Clay Cocalis to Chief Revenue Officer and the addition of Don McLaughlin, Senior Vice President, Review Software represents the significant investment the company is placing in Exterro Review to ensure greater market s
Shareholders’ proposals to the Annual General Meeting for the number of Marimekko’s Board members, the composition of the Board and its remuneration25.1.2022 14:00:00 CET | Press release
Marimekko Corporation, Stock Exchange Release, 25 January 2022 at 3.00 p.m. Shareholders’ proposals to the Annual General Meeting for the number of Marimekko’s Board members, the composition of the Board and its remuneration Shareholders representing in total approximately 27% of all of Marimekko Corporation’s shares and votes have made a proposal to the Annual General Meeting to be held on 12 April 2022 for the number of members of the Board of Directors, the composition of the Board and its remuneration. Proposal for the number of members of the Board of Directors Shareholders who represent approximately 27% of all of Marimekko Corporation’s shares and votes have informed the company that they propose to the Annual General Meeting that six (6) members be elected to the Board of Directors. Proposal for the composition of the Board of Directors The above-mentioned shareholders have also informed the company that they propose that Carol Chen, Mika Ihamuotila, Mikko-Heikki Inkeroinen and
RESULT OF RIKSBANK REVERSED AUCTIONS KOMMUNINVEST BONDS25.1.2022 11:07:00 CET | Press release
RESULT OF RIKSBANK REVERSED AUCTIONS KOMMUNINVEST BONDS Auction date2022-01-25Loan2311Coupon1.00 %ISIN-codeSE0010948240Maturity2023-11-13 Tendered volume, SEK mln500 +/- 250 Volume offered, SEK mln1,357 Volume bought, SEK mln500 Number of bids4 Number of accepted bids1 Average yield0.067 %Lowest accepted yield0.067 %Highest yield0.067 %% accepted at lowest yield 100.00 Auction date2022-01-25Loan2611Coupon1.00 %ISIN-codeSE0012569572Maturity2026-11-12 Tendered volume, SEK mln500 +/- 250 Volume offered, SEK mln1,699 Volume bought, SEK mln500 Number of bids6 Number of accepted bids3 Average yield0.725 %Lowest accepted yield0.722 %Highest yield0.730 %% accepted at lowest yield 54.55 Auction date2022-01-25Loan2805Coupon0.75 %ISIN-codeSE0015660139Maturity2028-05-12 Tendered volume, SEK mln500 +/- 250 Volume offered, SEK mln2,462 Volume bought, SEK mln500 Number of bids11 Number of accepted bids4 Average yield0.957 %Lowest accepted yield0.954 %Highest yield0.970 %% accepted at lowest yield 64.
RESULT OF RIKSBANK CERTIFICATE SALE25.1.2022 10:15:00 CET | Press release
AuctionAuction resultsAuction date2022-01-25Start date2022-01-26Maturity date2022-02-02Interest rate, %0.00Offered volume, SEK bn574.0Total bid amount, SEK bn2798.9Accepted volume, SEK bn574.0Number of bids16Percentage alloted, %20.508