© pkc_production_x Electronics Production | April 03, 2017
PKC Group expands with acquisition of Fortitude Industries
PKC Group has signed and closed a contract to buy the rolling stock electrical distribution system company Fortitude Industries Inc., in the state of New York (USA).
The deal includes 100 percent of the shares of Fortitude Industries Inc. (doing business as: Advanced Transit Manufacturing - 'ATM'), which have been acquired from Margaret and Barry Walsh. ATM provides wiring, cable harnesses and electro-mechanical assemblies incl. electrical cabinets for the Rolling Stock and transportation industries. The customers are leading companies in the Rolling Stock market. ATM’s revenue in 2016 totalled some USD 8 million and number of personnel at the end of 2016 totalled about 50. Matti Hyytiäinen, President & CEO, PKC Group, states: "The acquisition is in line with our strategy to become the global leading electrical commodity system supplier for the Rolling Stock market, which is valued at EUR 2 billion per annum. The deal gives us immediate access to the North American market, which is valued alone at about EUR 500 million per annum for electrical cabinets, power packs and electrical distribution systems and is expected to grow with more investment into infrastructure and public transportation in the near future." Margaret Walsh, President, ATM, adds: "ATM has grown during the last few years and become a leading partner for rolling stock customers in North America. In order to capture further growth opportunities and to meet rising customer demands, we have decided to join the PKC Group. Together we will be continuing to build the leading global electrical commodity system supplier in the Rolling Stock market in which North America will have an important role and contribution." The net debt free cash purchase price is USD 9.25 million and the purchase price is financed with PKC Group's cash resources. The purchase price also includes earn-out payable in two instalments on the basis of year 2017 and 2018 results respectively.