© Inission Electronics Production | February 26, 2020
Swedish EMS provider expands with Finnish acquisition
Swedish EMS provider Inission has signed an agreement to acquire 100% ownership of the Finnish manufacturer HY-Tech Comp Oy (HY-Tech).
HY-Tech is a manufacturing service provider and partner in mechanics, electronics and electro mechanics with production facilities in Finland and Estonia. With this acquisition Inission will widen its portfolio in Finland and strengthen its position as a complete contract manufacturer with both electronics and mechanics. Inission is acquiring the Finnish company for EUR 3,3 million, out of which EUR 1,62 million will be paid in cash and the rest will be paid with 147.000 Inission B-shares, resulting in a dilution of 3%. The seller is Helmet Capital with its investors. Helmet Capital is a Finnish private equity firm, which invests in small- and medium-sized (SME) companies, a press release reads. For the full year of 2018 HY-Tech had a revenue of EUR 15,4 million with an EBITDA of EUR 0,6 million. According to the preliminary unaudited figures of 2019 the revenue increased to EUR 15,9 million and EBITDA will end up at EUR 0,9 million. With the acquisition, Inission will gain access to HY-Tech's production facilities in Lohja, Finland and Lagedi, Estonia. The Swedish company says that through this acquisition, the company will be able to improve service and product offering to its existing customers, widen its customer base, enter into new markets and new geographic areas. The acquisition also balances Inission’s customer portfolio both in numbers and industrial segments. After the acquisition, HY-Tech business units will continue to run their operations as independent units within Inission. In the long-term, the acquisition is expected to bring synergy benefits in, for example, material purchasing and cross-selling opportunities. "Inission is well established in Sweden with five factories and after our recent acquisition in Norway it is very satisfactory to become present in Finland. The Nordic countries are our market and this will make Inission more complete and HY-Tech much stronger. Together we will be able to offer mechanics as well as electronics to all our customers. It is a strong fit and I very much welcome HY-Tech as a new member of Inission," says Olle Hulteberg, Marketing Director and one of Inissions main owners. "HY-Tech is famous for competitive and flexible contract manufacturing in industrial sectors. We provide our customers with cost-effective, reliable and competent services. Together with Inission we will be even more focused on high tech and providing machine building industries focused cutting-edge solutions. We at HY-Tech look for strong co-operation within Inission and are ready to utilize the group’s all aspects in order to provide world class customer service," adds Pekka Väyrynen, CEO HY-Tech.