© Note Electronics Production | November 01, 2018
Note acquires UK-based Speedboard Assembly Services
Swedish EMS provider Note, says it has acquired all shares in the UK based electronics manufacturer Speedboard Assembly Services Ltd. The 100 employee strong company operates at a facility in Windsor outside London.
Speedboard's former co-owner Neil Owen will continue to act as Managing Director of the company, and Richard Watson, Finance Director, will remain for a while to ensure a smooth transition process.. The acquisition is made by Note UK Ltd and the purchase price initially amounts to GBP 7 million on a debt-free basis and may under certain favourable circumstances be increased by an additional purchase price of GBP 0.5 million in 2020, a press release states. Based on the company's operating profit over the past 12 months, the initial purchase price corresponds to an acquisition multiple (EV/EBIT) of just below 5.0, which is about 35% below the corresponding valuation multiple of the Note share. Over the same period, the acquisition would represent a sales growth of 12% and an increase in operating profit of approximately 20%. "For a long time, Note has had the ambition to expand in the UK. The UK EMS market is approximately at the same level as the entire Nordic market. We are very pleased to implement this acquisition, seeing Speedboard as one of the most competitive players in the UK market. Growth is strong, and the company has many exciting customers and new projects. We are looking forward to further developing the business in Windsor with current staff, management and customers", says Johannes Lind-Widestam, CEO and President of Note. "For some time, I've experienced Note as a company that shares our core values with high quality and customers at its core. I look forward to working with other units at Note, both in Europe and in China, and not least on the purchasing side. In my eyes, Note is an ideal owner for our staff as well as for our customers. I am convinced that this will further strengthen our customer offering and continue our expansion in the UK market", says Neil Owen, MD of Speedboard.