By STEPHEN HARDY -- Hexatronic Group AB says it has acquired 100% of the shares of Dutch company H. Weterings Galgeweg BV on July 1. Weterings offers ducts and tubes for the telecommunications and agriculture markets.
Hexatronic paid 5.6 million euros in cash and newly issued stock; the deal calls for an addition sum of up to 2.8 million euros based on EBITDA for the next two years.
Founded in 1945, Weterings produces ducts, tubes, and hoses used for protection of cables and transportation of liquids and gases. Fiber to the home (FTTH) provides the main market for the former application and agriculture for the latter.
The company’s assets include what Hexatronic described as “large and variable production capacity,” which enables short lead-times.
Weterings is being absorbed into Hexatronic. The three sellers, who were Weterings’ directors, will remain in their current roles.
The company generated sales of 15 million euros with an EBITDA of 1.6 million euros over the past 12 months. Hexatronic expects the new assets to add 0.29 SEK in earnings per Hexatronic share in the first full year after close.
“We are very pleased to welcome the team of Weterings to Hexatronic Group. The acquisition is strategic and will increase Hexatronic’s manufacturing capacity for high-quality ducts, and the facility is well located for manufacturing ducts to several important and larger markets in central Europe,” commented Henrik Larsson Lyon, CEO of Hexatronic Group.
The acquisition is being financed by a senior bank loan from Danske Bank.