SVI buys Seidel Electronics Group

SVI will acquire Seidel – which has manufacturing facilities in Austria, Slovakia and Hungary – along with a minority interests in Seidel's two product design and development companies located in Austria and Slovenia The transaction supports the expansion of SVI's business in European markets, in particular in the German-speaking regions where the company is currently under-penetrated. The acquisition brings a solid design, manufacturing and logistics platform to SVI in Austria and in cost-competitive Eastern European countries. Seidel Electronics Group employs about 700 people at its sites in Austria, Hungary, Slovenia and Slovakia and has a turnover of EUR 90 million.

© SVI

“This acquisition represents a tremendous step forward in SVI’s growth strategy,” explained SVI’s CEO Pongsak Lothongkam. “The Seidel companies are a perfect strategic fit for SVI, bringing us a very strong base in Austria and Eastern Europe from which to serve our customers. Seidel’s customer base in German-speaking Europe is 100% additive to SVI’s strong market position in Scandinavia, and Seidel brings into the SVI group advanced engineering and systems integration skills in Austria and low-cost production sites in Slovakia and Hungary.” Europe has for a long time been SVI's biggest market, a market which the company has served without a European production facility – until now. The acquisition creates synergies that provides SVI’s European customers with an option for Eastern Europe production and logistics, and Seidel’s customers now having an option for high-volume production at SVI’s Asian facilities in Thailand and Cambodia. “Given the synergies that we anticipate both in terms of increased sales and more efficient use of our combined resources, we expect revenues of the combined company to surpass USD 400 million in the next twelve months,” concluded SVI’s CEO.