Hexatronic Group AB (OM:HTRO) completed the acquisition of Blue Diamond Industries, LLC from Sherri Simpson and three other members of the senior management of Blue Diamond Industries, LLC.
January 02, 2018
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Hexatronic Group AB (publ) (OM:HTRO) entered into a definitive agreement to acquire Blue Diamond Industries, LLC from Sherri Simpson and three other members of the senior management of Blue Diamond Industries, LLC for an enterprise value of $23 million on December 4, 2017. The consideration includes a payment of up to $2.5 million based on performance of Blue Diamond Industries. The acquisition is expected to be fully financed through a committed senior debt. Blue Diamond Industries will also be known as Hexatronic USA and will locate in Lexington, Kentucky. The effective enterprise value represents an implied transaction multiple of 5.3x to 5.9x LTM EBITDA. In the last twelve months, Blue Diamond has generated a revenue of approximately $29 million and EBITDA of $4 million. The four members of the senior management of Blue Diamond, the sellers, will continue in their current positions post closing.
The acquisition is subject to customary closing conditions and is expected to close in early January 2018. The acquisition is expected to be accretive to earnings from the first full year adding SEK 0.5 ($0.0594) to SEK 0.6 ($0.07128) per Hexatronic share in 2018. Net debt/EBITDA for the Hexatronic Group following the transaction is expected to be approximately 1.0x. Ellis & Winters LLP acted as legal advisor to Hexatronic for the transaction.
Hexatronic Group AB (publ) (OM:HTRO) completed the acquisition of Blue Diamond Industries, LLC from Sherri Simpson and three other members of the senior management of Blue Diamond Industries, LLC on January 2, 2018. Danske Bank has provided committed credit facilities securing long term financing for the acquisition. Blue Diamond Industries will be consolidated into the Hexatronic Group and will run as an independent company within the Group.
Hexatronic Group AB is a Sweden-based company engaged in the production of electronic and technical solutions. The Companyâs products are divided into three categories, namely Network, which offers solutions for both fiber and copper systems, such as Small Firm-factor Pluggables (SFP), Customer Premises Equipment (CPE), switches, converters, patchcords and pigtails, fanouts, attenuators, jacks and telesplitters, among others; Components, which includes cables, connectors, high power Light Emitting Diodes (LEDs) and relays, among others, and Site Solutions, which includes products, such as distribution boxes, fiber optic terminal boxes, cross-connection cabinets, fiber splice closure flats and soft cable fixing panels, among others. Its subsidiaries include Proximon AB and Tele & Datanat Fiberoptik i Orebro AB, both active in fiber optic technology.
Hexatronic Group AB (OM: HTRO) completed the acquisition of Blue Diamond Industries, LLC from Sherri Simpson and three other members of the senior management of Blue Diamond Industries, LLC.