Efore Plc has completed on 31 December 2018 the acquisition of the entire share capital of Powernet International Oy.
Efore is an international Group which develops and produces demanding power products. Efore’s head office is based in Finland and its R&D functions are located in Finland, Sweden, Italy and China. Sales and marketing operations are located in Europe, United States and China. In the financial year ending in December 2017, consolidated net sales totalled EUR 69.9 million and the Group’s personnel averaged 432. The parent company’s share is quoted on the Nasdaq Helsinki Ltd.
The acquisition further shifts Efore’s focus towards higher value-added products and solutions. Efore’s Systems business and Powernet form a strong platform based on Finnish know-how dating back years, on which Efore and Powernet can together build new and growing business.
From the beginning of 2019 Efore’s Systems business and Powernet International Oy will form a new business line in the Industrial business area. Powernet’s current CEO Heikki Viika will be nominated as the executive vice president of the new business line and he will be a member of the Efore group management team.
Powernet, founded in 1992, develops and manufactures customer specific power supplies and systems, of which examples are customised power supply and power distribution packages as well as turnkey project deliveries, e.g. to the train industry. Powernet has also been a forerunner in the development of IoT enabled condition monitoring of power supply and power distribution packages, which is utilized in e.g. smart battery chargers. Powernet is well recognized especially in the North and Central Europe. Powernet has 30 employees and in financial year 2017 its turnover was EUR 9.7 million and EBITDA EUR 0.9 million.
The purchase price on a cash and debt free basis (enterprise value) is EUR 4.5 million and the purchase price for the shares at closing of the transaction is EUR 2.5 million. Additionally, the parties have agreed on an earn-out. The maximum amount of the earn-out is EUR 1.5 million and may be paid based on Powernet Group’s consolidated sales margin for financial year 2019.