HANZA Signs Agreement to Acquire Orbit One

06 December, 2023 | Editorial Team

HANZA Signs Agreement to Acquire Orbit One 712370

In a strategic move to bolster its position in the contract manufacturing sector, HANZA AB announced the signing of an agreement to acquire all shares in Orbit One AB, a prominent Swedish company specializing in electronics and electromechanics contract manufacturing. With an annual sales figure of approximately SEK 1.1 billion and an operating profit (EBITA) of around SEK 70 million, Orbit One's robust presence in the Nordic market aligns seamlessly with HANZA's expansion goals.

Orbit One, boasting two production facilities in Sweden and one in Poland, employs approximately 620 individuals, including 65 engineers. The acquisition not only enhances HANZA's manufacturing cluster in Sweden and Central Europe but also brings added capacity and expertise in electronics manufacturing, contributing to an anticipated increase in earnings per share.

The transaction details reveal that the purchase price for Orbit One's shares, estimated at SEK 367 million, is contingent on the financial statements for November 2023. An additional purchase price, dependent on the company's 2024 performance and capped at SEK 91 million, reflects a maximum EV/EBIT multiple of 7 on a debt-free basis.

Closing the deal is subject to regulatory approvals, expected by early January 2024. Orbit One's board member and co-owner, Mats Johansson, expressed confidence in HANZA as a "good and long-term new owner," emphasizing their shared commitment to fostering a positive corporate culture with sustainable values.

HANZA CEO Erik Stenfors praised Orbit One as a "respected colleague" and emphasized the acquisition's alignment with the company's strategic vision, HANZA 2025. Orbit One's CEO, Mattias Lindhe, echoed the sentiment, describing the merger as a "perfect combination" that will strengthen both companies in the industry.

The acquisition is anticipated to significantly impact HANZA's financial targets for 2025, prompting the Board of Directors to consider revisions. Notably, Orbit One's CEO, Mattias Lindhe, will remain within the HANZA group, reinvesting SEK 2 million of the purchase price in HANZA shares with a 12-month lock-up commitment. This transformative deal positions HANZA as a major player in the competitive contract manufacturing landscape.

Click here to learn more about HANZA AB.

Click here to learn more about Orbit One AB.

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