Note acquires iPro in EMS consolidation

“iPRO manufactures electronics-based products with customers mostly found within greentech, but also in medtech and industrial sectors,” according to Note. “The company will strengthen Note’s growing position in the greentech customer segment. iPro’s business model is similar to Note’s and is based on long-term customer collaborations, quality and delivery performance. iPro is already in a strong growth phase with several ongoing projects in the electric vehicle and e-mobility markets.”

Based in Haddenham and employing 100 staff, iPro was founded, lead and, until now, owned by Martin Deas, who will continue as MD.

“I look forward to working with other Note units, both in Europe and in China, and to benefiting from synergies particularly in areas such as global sourcing,” said Deas. “I believe Note is an ideal owner for both our staff and our customers.”

The purchase price initially amounts to £7m on a debt-free basis and may be increased by an additional purchase price of a maximum of £2.3m. “In terms of the company’s development over the past 12 months, the initial purchase price corresponds to an acquisition multiple (EV/EBIT) of approximately 3.5,” said Note. Seen over the past 12 months, pro forma the acquisition means a sales growth for Note of ~17% and an increase in operating profit (EBITA) of around 16%. Together with the geographically nearby plants in Windsor and Stonehouse, Note’s sales in UK amounted to just over SEK500m (£43m) /pro forma for the past 12 months.

Payment of the purchase price is made in cash. Following the acquisition, Note’s equity/assets ratio amounts to ~43%.

“The size of the British EMS market is approximately at the same level as the entire Nordic market,” said Note CEO and president Johannes Lind-Widestam. “We are very pleased to complete this acquisition, which significantly strengthens our position in the UK. The growth in iPRO is strong and the company has many exciting customers and new projects. We are already seeing a significant recovery in demand in the UK market as well and look forward to further develop the operations of iPRO together with current customers, staff and management.”

Note is listed on Nasdaq Stockholm and has a presence in Sweden, Finland, the UK, Estonia and China. Net sales in the last 12 months were SEK 1,901 million (£160m) and the group has ~1,100 employees.

Websites: Note  iPro