NCAB acquires US-based Bare Board Group

BBG had a turnover of approximately SEK 280 million during 2019 (SEK/USD rate of 9,50). Most of BBG’s suppliers are based in Taiwan and the company has in total about 30 employees. Through this transaction, NCAB will more than double its net sales in North America. The purchase price for BBG amounts to SEK 125 million (SEK/USD rate of 10,0) which implies a profit multiple of approximately 7 times adjusted EBITA before synergy effects. The company is expected to be consolidated from May 1 and will be integrated into NCAB’s organization for North America. The acquisition is estimated to give a positive EBITA contribution for NCAB Group in 2020. Synergy effects are expected to arise from a stronger market position, through larger purchase volumes and a broader supplier network. “For a long time we have been following BBG’s development. BBG will be a significant addition to NCAB in the US and we will together be a clear leader in the market. It is also very interesting that BBG has most of its sourcing of PCBs from Taiwan. These imports are made today without the US import tariffs that are imposed on Chinese PCBs, which will be useful for several of NCAB’s customers. It is important for us to invest for the future especially in times as these, this will make us a stronger supplier for our customers going forward. In terms of culture, BBG is similar to us with entrepreneurship and a comparable business model,” says Hans Ståhl, President and CEO of NCAB, in a press release. Adrienne Ridley and Jason Liu, former owners of BBG that both will continue in managing positions within NCAB USA comment: “We are thrilled to be joining forces with NCAB Group in the US. This deal is very exciting and positive, both for our customers and employees. Our customers will get access to more factories with the best technology. For our employees, we join a great international organization with many highly skilled colleagues. This will further develop and strengthen us for the future. Being selected by NCAB Group to be a part of their North American growth is a great compliment. As the PCB supply market continues to evolve this is an excellent time to take this step and grow together.”