Electronic components manufacturer Acal (LSE: ACL) has agreed to acquire specialist distributor of electronic and photonic components BFi OPTiLAS for €10 in cash and 2 million ordinary shares.
BFi OPTiLAS distributes electronic and photonic components, modules and systems across Europe and supplies value-added calibration and maintenance services. The company made €105 million in revenues for the year to June 2009 compared to €128 million in the previous year, while EBITDA (earnings before tax, depreciation and amortisation) amounted to €0.7 million and profit from current operations reached €48,000, down from EUR3.6 million in 2008.
Acal expects the acquisition, which it said was a key step in its strategy to create “the leading distributor in Europe with a clearly differentiated market position,” to be earnings enhancing in the financial year of 2010/11, while operational synergies are expected to be at €5 million.
“By bringing the two businesses together, we are creating a clearly differentiated specialist, providing electronic and photonic products and services to over 14,000 customers across Europe. This transaction creates the scale required to succeed in the key European markets, and enables substantial operational synergies,” said Chief Executive of Acal Nick Jefferies.
This is Acal’s second acquisition this year. The company has purchased Service Source Europe Limited in the first half of 2009, paying £1,850,000 in cash for a 75% stake in the company and then buying the remaining 25% for a cash consideration of £1,000,000.