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Electronics Production | November 29, 2005

Technitrol to acquire ERA Group

Technitrol has agreed to acquire ERA Group, a privately held producer of electronic coils and transformers primarily for the European automotive market.
In operation since 1969, ERA is based in Herrenberg, Germany, with production operations located in Germany, Tunisia and China. Its principal product line consists of advanced-technology automotive ignition coils and includes a variety of other coils and transformers used in automotive, heating/ventilating/air conditioning and appliance products.

The purchase price is €49 million, or approximately $57 million. The acquisition will be financed using bank credit under Technitrol's multi-currency credit facility. Closing of the transaction is expected in early 2006.

For the 12 months ending December 31, 2006, ERA's revenues are expected to be about $90 million and, before synergies that will arise from its integration into Pulse, ERA is expected to contribute between $0.08 and $0.10 per diluted share to Technitrol's annual earnings. Pulse expects that the integration of ERA operations will be largely completed by the end of 2007, resulting in annual net savings in cost of goods sold and operating expenses ramping to more than $8 million in 2008.

ERA will be the cornerstone of the newly formed automotive products division within the power products group of Technitrol's Pulse unit.

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