Electronics Production | September 14, 2006
PartnerTech acquires Hansatech
In line with its strategy of combining proximity to its customers, production units and supplier networks, PartnerTech AB has acquired a 100 percent stake in The Hansatech Group in the UK for the purpose of further strengthening its European presence.
"The acquisition provides us with a platform in the UK and fits well into our strategy of linking proximity to our customers to production, suppliers and expertise in other parts of the world," says PartnerTech CEO Mikael Jonson (image). With plants in Cambridge, King's Lynn and Poole, The Hansatech Group has some 320 employees and annual sales of approximately GBP 20 million. The company has advanced expertise in areas such as prototype development, printed circuit board assembly and box build. The Hansatech Group has a highly developed customer base, strong balance sheet and stable profit generation. "PartnerTech's structure gives us an opportunity to provide our customers with a very strong offering," says The Hansatech Group MD Gary Howse. "The Hansatech Group's market and position, along with PartnerTech's structure and business set-up, will create value and benefit to both us and our customers." The UK market for industrial products in the area of electronics is highly fragmented. The Hansatech Group is among the five largest companies in the market. PartnerTech is estimated to pay approximately GBP 5.8 million (GBP 4.7 million on a debt free basis), for a 100 percent stake in Hansatech, including an additional earn-out. GBP 2 million of the purchase sum is in PartnerTech shares and the remainder in cash. The payment with shares means an issue of 211 875 new PartnerTech shares based on the authorization decided on the latest annual general meeting. The takeover is expected to immediately boost PartnerTech's earnings per share with approximately SEK 0.60-0.80 on annual basis. Surplus values and goodwill are estimated to approximately SEK 20 million.