Note expands its manufacturing capacity in Sweden
Through the acquisition, Note will have its fourth Swedish facility and an establishment close to customers in western Sweden, reads a press release.
The company’s business model is said to be similar to Notes and the customers are found mainly in the Communication and Industrial segments. At the beginning of 2022, the plant in Herrljunga, according to the press release, showed high growth in combination 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 factory to the Group, is also expanding our manufacturing capacity in Sweden. In Sweden, which is Notes’ largest market, we noted a growth during Q1 for Note of 45%. Together with the customers, staff and management of the facility in Herrljunga, we look forward to continuing the profitable growth journey, says Johannes Lind-Widestam, CEO and CEO 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 Notes’ 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 Notes.