Electronics Production | May 30, 2006
Lagercrantz Group acquires Elpress
Lagercrantz Group has concluded an agreement to acquire all shares outstanding in Elpress AB. Seller is Atle Industri AB.
With its wholly owned subsidiaries Elpress A/S in Denmark and Elpress GmbH in Germany, Elpress AB is a leader in electric connection systems. The company's products are aimed primarily at market segments with high requirements for performance and service level. The company commands a market-leading position with electrical grid companies in the Nordic Region. Export growth is focused on transformer, train system and wind power equipment manufacturers. Elpress AB is located in Kramfors. The Elpress group has a tradition of stable earnings. During calendar year 2006 the group is expected to generate sales of over MSEK 180, with income after financial items, but before acquisition costs, of MSEK 16. Elpress has approximately 130 employees and will be a part of Lagercrantz Group's division Mechatronics from 1 June 2006. Jörgen Wigh, President & CEO of Lagercrantz Group, comments the acquisition: “Within Lagercrantz we want to build businesses with leading market positions in interesting niches. Elpress has a very strong position in its home market, with interesting growth opportunities in the budding expansion of the electrical grid. The export potential, where Elpress is following a number of its customers into world markets, is also very interesting. The company also has a very strong brand name in its industrial segment.” The total price for the shares in Elpress AB amounts to MSEK 98. The acquisition is expected to make a positive contribution to earnings per share for the financial year that began 1 April 2006.