Note expands its manufacturing capacity in Sweden
Swedish EMS provider Note announces the acquisition of Dynamic Precision Solutions in Herrljunga, Sweden.
Through the acquisition, Note gets its fourth Swedish plant and an establishment close to customers in western Sweden, a press release reads.
The company's business model is said to be similar to Note’s, and the customers are mainly found in the segments Communication and Industrial. In the beginning of 2022, the plant in Herrljunga has, according to the press release, shown high growth combined with strong profitability. The number of employees in the business amounts to approximately 30.
We are pleased to complete this acquisition, which in addition to adding another profitable plant to the Group, is also expanding our manufacturing capacity in Sweden. In Sweden, which is Note's largest market, we noted growth in Q1 for Note of 45%. Together with the customers, personnel and management in the plant in Herrljunga, we look forward to continuing the profitable growth journey, says Johannes Lind-Widestam, CEO and President of Note, in the press release.
The initial purchase price amounts to approximately SEK 20 million. The maximum purchase price, including profitability-based additional purchase prices, amounts to just over SEK 50 million. Based on a valuation on a debt-free basis, this corresponds to a multiple (EV/EBITDA) of approximately 5. Payment of the purchase price is made in cash based on Note's balance sheet.
Dynamic Precision Solutions' sales are estimated at SEK 140 million for the full year 2022 and with an operating margin in line with Note's.
