PKC Group Plc Press release 31 March 2017 16:50 p.m.
PKC Group expands with acquisition to Rolling Stock market in North America
PKC Group has today signed and closed a contract to buy the rolling stock electrical distribution system company Fortitude Industries Inc., in the state of New York (USA).
The deal includes 100% of the shares of Fortitude Industries Inc. (dba Advanced Transit Manufacturing - 'ATM'), which have been acquired from Margaret and Barry Walsh.
ATM provides wiring, cable harnesses and electro-mechanical assemblies incl. electrical cabinets for the Rolling Stock and transportation industries. The customers are leading companies in the Rolling Stock market. ATM’s revenue in 2016 totalled some USD 8 million and number of personnel at the end of 2016 totalled about 50.
Matti Hyytiäinen, President & CEO, PKC Group:
The acquisition is in line with our strategy to become the global leading electrical commodity system supplier for the Rolling Stock market, which is valued at EUR 2 billion per annum. The deal gives us immediate access to the North American market, which is valued alone at about EUR 500 million per annum for electrical cabinets, power packs and electrical distribution systems and is expected to grow with more investment into infrastructure and public transportation in the near future.
André Gerstner, PKC President, Rolling Stock, PKC Group:
This acquisition is a milestone in our business development for Rolling Stock business and supports successful execution of our global agreements with our Rolling Stock customers. With ATM we are in the position to continue our organic growth and to strengthen our customer relationships.
Margaret Walsh, President, ATM:
ATM has grown during the last few years and become a leading partner for rolling stock customers in North America. In order to capture further growth opportunities and to meet rising customer demands, we have decided to join the PKC Group. Together we will be continuing to build the leading global electrical commodity system supplier in the Rolling Stock market in which North America will have an important role and contribution.
The net debt free cash purchase price is USD 9.25 million and the purchase price is financed with PKC Group's cash resources. The purchase price also includes earn-out payable in two instalments on the basis of year 2017 and 2018 results respectively.
Closing shall be effective as of 1st of April 2017 and ATM will be consolidated to PKC Group as of that date.
The acquisition is estimated not to have a significant impact on PKC Group's 2017 result.
PKC Group Plc
Board of Directors
Matti Hyytiäinen
President & CEO
For additional information, contact:
Matti Hyytiäinen, President & CEO, tel. +358 (0)400 710 968
Distribution
Nasdaq Helsinki
Main media
www.pkcgroup.com
PKC Group is a global partner, designing, manufacturing and integrating electrical distribution systems, electronics and related architecture components for the commercial vehicle industry, rolling stock manufacturers and other selected segments. The Group has production facilities in Brazil, China, Germany, Lithuania, Mexico, Poland, Russia, Serbia and the USA. The Group's revenue from continuing operations in 2016 totalled EUR 846 million. PKC Group Plc is listed on Nasdaq Helsinki.