Note expands in the UK by acquiring DVR Ltd.
Note expands its manufacturing capacity in the UK market through the acquisition of all shares in the electronics manufacturer DVR Ltd.
The British EMS market is expected to experience strong growth in the coming years and through the acquisition Note is positioning itself further in the British EMS market. DVR's turnover for 2023 is expected to reach GBP 12 million (SEK 165.48 million) with profitability in line with Note's.
DVR has a business model similar to the Swedish EMS provider, with PCB and box-build manufacturing at high quality. The company focuses on long-term customer relationships and has a strong customer portfolio combined with a good influx of customers in recent years. A substantial part of the customers can be found in the Industrial and Greentech segments.
DVR's operations were founded by the Hellings family and have been run and developed successfully, most recently under the leadership of David Hellings, who will continue his role as CEO of the company. The company currently has approximately 95 employees with premises in Basildon, Essex
Note states in a press release that the British EMS market – which corresponds to the Scandinavian market in size – is expected to have higher growth than the European EMS market in general. Through the acquisition of a fourth plant in England, Note now gains greater coverage and becomes a larger player in this growing market.
The purchase price amounts to GBP 9 million (SEK 124 million). In addition, the purchase price may be increased by an additional purchase price of a maximum of GBP 3.0 million (SEK 41.35 million) based on future growth and profitability targets.
“Our business continues to develop strongly, and we are now making our third acquisition in the past year. We are very excited that DVR will now become part of the Note Group. The acquisition strengthens our position in the UK EMS market, which we strongly believe in and which is expected to have a strong growth in the coming years. DVR has a strong customer portfolio with exciting projects and we also see opportunities for synergies with our existing customers and suppliers. We look forward to continuing the profitable growth journey together with customers, staff and management at DVR”, says Johannes Lind-Widestam, CEO and President at Note, in the press release.