Acquisitions and disposals
Addtech is continually on the lookout for companies to acquire and is engaged in discussions with several possible companies. During this financial year Addtech made six acquisitions that came into effect during the year. A total of 12 acquisitions were made during the preceding year, which was partly due to the fact that only one acquisition was made in the year before that. The past year's acquisitions were implemented in all business areas and are diverse as regards 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 more than 60 companies. The following acquisitions were made during the financial year:
- Elteco. Addtech acquired Elteco AS on 1 April and the company is now part of the Addtech Energy & Equipment business area. Elteco AS is a technology trading company with products in electricity distribution and automation. Elteco has 19 employees and sales of about NOK 80 million.
- Trinergi. On 1 April Addtech acquired Trinergi AB, which became part of Addtech's Energy & Equipment business area. Trinergi is a technology trading company with products for electrical power measurement and thermography. Trinergi has sales of about SEK 20 million and seven employees.
- Maxeta. Addtech acquired Maxeta AS on 1 July to become part of the Addtech Energy & Equipment business area. Maxeta is a technology trading company operating in two main fields: products for electricity distribution and electrical installation materials. It has 50 employees and sales of about NOK 80 million.
- Ramström Transmission. On 1 October, Addtech acquired Ramström Transmission AB, which became part of the Addtech Industrial Solutions business area. Ramström Transmission is a technology trading company working in the field of transmission components. The company joins the Motion Technology business unit, where its products constitute a good complement to existing sales of mechanical transmission components in the Nordic markets. Ramström Transmission has 19 employees and sales of about SEK 50 million.
- Rollco Holding. Rollco Holding AB was acquired on 2 January to become part of the Addtech Components business area. Rollco Holding AB is the parent company of the Rollco group, which operates in the Nordics and Taiwan. Rollco is a leading supplier of components and solutions for linear motion and automation solutions to the manufacturing industry in the Swedish and Danish markets. The Rollco group has 38 employees and sales of roughly SEK 100 million.
- BioNordika Holding. On 26 January Addtech acquired BioNordika Holding AB which became part of the Addtech Life Science business area. BioNordika Holding AB is the parent of the BioNordika group, with subsidiaries in the Nordics and Estonia. The group sells reagents and instruments for biomedical research - mainly to the pharmaceuticals industry and public institutes. The BioNordika group has 24 employees and sales of roughly SEK 80 million.
The total purchase consideration for the period's six acquisitions was SEK 301 million. Addtech also acquired the remaining 20 percent of the shares in Egil Eng AS for SEK 2 million.
The acquisitions had a combined effect of SEK 264 million on the Addtech Group's net sales, SEK 22 million on operating profit and SEK 15 million on profit after tax for the period. If the acquisitions had been made at 1 April 2011, they would have had an effect of about SEK 453 million on consolidated net sales, about SEK 41 million on operating profit and about SEK 28 million on profit after tax for the period. The acquisitions were made using an average EV/EBIT multiple of about 5. The number of Addtech employees increased by 157 people via the year's acquisitions.
Disposal of Electra-Box Pharma AB took place on 30 January; it was a subsidiary of Electra-Box Diagnostica AB, which is part of the Addtech Life Science business area. The company has annual sales of roughly SEK 4 million and 2 employees.