Acquisitions and disposals
Addtech is constantly on the lookout for companies to acquire and is engaged in discussions with several possible companies. During this financial year Addtech made eight acquisitions that came into effect during the year. Six companies were acquired in the previous year. The past year's acquisitions were implemented in the Components, Energy and Life Science business areas and are diverse in terms of both markets and products.
Our three main reasons for acquisitions are so that our:
- Subsidiaries can make small-scale bolt-on acquisitions in order to reinforce existing operations in their niche.
- Business units can expand and build market and/or product positions in selected market segments.
- Business areas can add new market segments in the areas where we see the right conditions for being able to become market leaders.
Since becoming a listed company in 2001, Addtech has acquired around 70 companies. The following companies were acquired during the year:
- Staubo Elektro Maskin. On 1 July, Staubo Elektro Maskin AS was acquired and became part of the Addtech Energy business area. Staubo Elektro Maskin is a technology trading company that supplies comprehensive solutions in battery and power supply, electric motors and signalling systems. Staubo Elektro Maskin has 15 employees and sales of about NOK 65 million.
- ASI Automatikk. On 1 July, ASI Automatikk AS was acquired and became part of the Addtech Components business area. ASI Automatikk AS is a technology trading company that offers electromechanical components for machinery manufacturers and for the marine and offshore sector. ASI Automatikk has seven employees and sales of some NOK 40 million.
- Leica Nilomark. On 1 October Leica Nilomark Oy was acquired and became part of the Addtech Life Science business area. Leica Nilomark offers consumables and instruments for laboratories for healthcare and medical research. Leica Nilomark has ten employees and sales of around EUR 3 million.
- Active Care. On 8 October Active Care Sverup AB was acquired and became part of the Addtech Life Science business area. Active Care sells medical technology products with related consumables. Active Care has eight employees and sales of about SEK 25 million.
- Quality Documentation. On 1 November, the acquisition of Quality Documentation Scandinavia AB ("QDOC") took effect, with the company becoming part of the Addtech Components business area. QDOC is a technology trading company in the area of fibre and copper instruments, and network measuring, monitoring and documentation. The company has five employees and sales of about SEK 11 million.
- Necks Electric. On 1 November, the acquisition of the Necks Electric group took effect, with it becoming part of the Addtech Energy business area. The Necks Electric group is a supplier of holistic customised power line systems. The Necks Electric group has subsidiaries in Sweden, Poland, Norway and Finland. The group has approximately 175 employees and sales of around SEK 220 million.
- Vallin Baltic. On 30 November Vallin Baltic AS and Vallin Baltic SIA were acquired and became part of the Addtech Energy business area. The Vallinn Baltic companies are technology trading companies that provide electrical installation products with related measuring systems and telecom equipment in the Baltic countries. The companies have around 20 employees and sales of about SEK 50 million.
- Norsk Analyse. On 7 January the Norsk Analyse group was acquired and became part of the Addtech Life Science business area. The Norske Analyse group sells system solutions and analysers for gas and fluid analysis, and performs service and maintenance on delivered equipment. The Norsk Analyse group has subsidiaries in Sweden, Denmark, Finland, Trinidad/Tobago and Turkey. The group has around 60 employees and total sales of about NOK 120 million.
The total purchase consideration for the year's eight acquisitions was SEK 346 million.
The acquisitions had a combined effect of SEK 303 million on the Addtech Group's net sales, SEK 13 million on operating profit and SEK 7 million on profit after tax for the year. If the acquisitions had taken place at 1 April 2012, they would have had an effect of an estimated SEK 630 million on consolidated net sales, about SEK 45 million on operating profit and about SEK 25 million on profit after tax for the year. The acquisitions were made using an average EV/EBIT multiple of about 5. The number of Addtech employees increased by 300 people through the year's acquisitions.