Kitron acquires Danish EMS provider
EMS provider Kitron announces that it has entered into an agreement to acquire Danish EMS company BB Electronics A/S. The deal will expand Kitrons manufacturing base and add production facilities in Denmark, China and the Czech Republic.
"BB Electronics gives us a solid position in one more Nordic country and extends Kitron’s footprint in CEE and China. The acquisition also provides a pathway to establishment in India. BB Electronics has well-run and highly automated manufacturing operations serving a loyal long-term customer base," says Kitron's president and CEO, Peter Nilsson, in a press release. The CEO continues to say that the company expect BB Electronics to continue with very little change and that BB CEO Carsten Christensen will join the Kitron Group management, maintaining his current responsibilities. "We expect the transaction to be immediately earnings accretive for Kitron, while also supporting our growth strategy," Peter Nilsson says. Kitron will acquire 100% of the shares of BB Electronics A/S from BB Electronics Holding ApS, which is owned by external investors as well as BB Electronics management for a total of DKK 600 million (approximately EUR 80.68 million), on a debt- and cash-free (Enterprise Value) basis. The acquisition includes all operations and assets of BB Electronics, inter alia in Denmark, the Czech Republic and China. BB Electronics is based out of Horsens, Denmark. The group has revenues of about DKK 1,000 million (about EUR 135 million) in 2021 and about 750 employees. The customer base is concentrated within industry, telecom and medical. "We believe the match with Kitron is excellent and provides an even stronger platform for BB Electronics, including a North American manufacturing presence, which is in strong demand from our existing customer base. We look forward to executing on our growth strategy under the Kitron umbrella," says Carsten Christensen, CEO of BB Electronics in the press release. Not only will the acquisition will provide Kitron with a strategic geographical expansion, establishing a presence in Denmark, an additional Nordic country. It will also strengthen Kitron's presence in CEE with a site in the Czech Republic, which is described as "a pathway to establishment in India." The acquisition will also increase the Norwegian company's capacity and capabilities in China.