Helios expands electronic controls technology via acquisition

Balboa is a supplier of electronic controls for the health and wellness industry with proprietary and patented technology that enables end-to-end electronic control systems for therapy bath and spas. Headquartered in Costa Mesa, California, Balboa is a global operation selling into 47 different countries and utilising a new manufacturing facility in Baja, Mexico. “This is another milestone in our Company’s history, and we are excited to welcome the Balboa team to the Helios family,” says Josef Matosevic, the Company’s President and Chief Executive Officer, in a press release. “Strategically, this acquisition is our first step in a multi-year journey to build out our Electronics segment into a top industry player. The deal aligns entirely with our Vision 2025 strategy and will have very attractive financial returns for our shareholders from day one. Additionally, I have already received very receptive feedback from some existing and potential new customers around areas for product development that Helios and Balboa will be able to create together.” “Helios has financed the Balboa acquisition with the amended credit agreement and existing cash of $16.2 million,” adds Tricia Fulton, Helios’s Chief Financial Officer. “On a pro forma basis, we expect our 2020 estimated year‐end net debt‐to‐Adjusted EBITDA leverage ratio to be approximately 3.4x. We remain committed to a long‐term net debt leverage target of less than 2.0x and expect to continue to benefit from our strong cash flows to support debt reduction and our organic growth initiatives.”