NORTHVILLE, Mich., Nov. 1, 2017 /PRNewswire/ -- Gentherm
(NASDAQ-GS:THRM), the global market leader and developer of
innovative thermal management technologies, announced today it has
acquired Etratech Enterprises, Inc. for approximately US$64 million in an all cash transaction.
Etratech, based in Burlington,
Canada, specializes in the design, development, and
manufacturing of advanced electronic controls and control systems
for the Automotive, RV and Marine, Security, Medical and other
industries. Etratech's capabilities help OEM customers rapidly
innovate and bring new technologies to market.
"We believe that growing our existing electronics capabilities
is critical to our success in the broad spectrum of markets in
which we participate," said Gentherm President and CEO,
Daniel R. Coker. "The acquisition of
Etratech will add new, innovative electronics products and
capabilities in our core automotive and medical markets. This
will diversify our product portfolio and manufacturing capabilities
in new and important areas. We are very excited to add Etratech to
an already outstanding electronics business and team."
"Etratech is dedicated to innovation, exceeding customers'
expectations and providing total customer satisfaction," said
Michael Desnoyers, President and CEO
of Etratech. "I believe that with Gentherm, we've found a perfect
fit for our global electronics engineering and manufacturing
business."
"The Shotgun Fund, as a selling shareholder, board member, and
strategy and growth adviser to Etratech is proud to have worked
with Michael and the company," said Larry
Klar of The Shotgun Fund. "We are confident in Etratech's
future success as part of Gentherm."
Etratech's management team will continue to lead the company,
which will integrate into Gentherm's Electronics Business
Unit. Etratech will continue operations at their headquarters
in Burlington, Ontario, Canada,
with manufacturing in Canada and
China.
Acquisition Highlights
- Etratech estimates revenues of approximately $77 million Canadian Dollars (US$61 million) during the twelve month period
prior to the acquisition, and forecasts continued revenue growth of
at least 15% in 2018.
- The purchase price of US$64
million represents approximately 8.5x EBITDA based on
trailing 12-months EBITDA at the time of closing.
- The transaction is expected to be accretive to earnings in
fiscal 2017 by approximately eight
cents per share on a fully diluted pro-forma basis.
- The purchase was funded from Gentherm's existing available
cash.
- It is anticipated that the acquisition could grow Gentherm's
total electronics revenues to approximately US$200 million by 2019.
Angle Advisors acted as the exclusive investment banking advisor
to Etratech Enterprises, Inc. in completing this transaction.
About Gentherm
Gentherm (NASDAQ-GS: THRM) is a
global developer and marketer of innovative thermal management
technologies for a broad range of heating and cooling and
temperature control applications. Automotive products include
variable temperature Climate Control Seats, TrueTherm® cupholder
and storage bins, heated automotive interior systems (including
heated seats, steering wheels, armrests and other components),
battery thermal management systems, cable systems and other
electronic devices. Non-automotive products include remote power
generation systems, heated and cooled furniture, patient
temperature management systems, industrial environmental test
chambers and related product testing services and other consumer
and industrial temperature control applications. The Company is
also developing a number of new technologies and products that will
help enable improvements to existing products and to create new
product applications for existing and new markets. Gentherm has
over 13,000 employees in facilities in the United States, Germany, Canada, China, Hungary, Japan, Korea, Macedonia, Malta, Mexico, United
Kingdom, Ukraine, and
Vietnam. For more information, go to www.gentherm.com.
About Etratech
Founded in 1989 in Burlington, Ontario, Canada, Etratech
specializes in the design, development and manufacture of advanced
electronic controls and control systems for major multinational
companies. Etratech serves Original Equipment Manufacturers
(OEMs) and other manufacturing firms with a total solution that
extends far beyond traditional electronic manufacturing services
(EMS). Etratech employs more than 400 people worldwide with
manufacturing facilities in Canada
and China. For more information, go to www.etratech.com.
Except for historical information contained herein, statements
in this release are forward-looking statements that are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
represent Gentherm Incorporated's goals, beliefs, plans and
expectations about its prospects for the future and other future
events. The forward-looking statements included in this press
release are made as of the date hereof or as of the date specified
and are based on management's current expectations and
beliefs. Such statements are subject to a number of important
assumptions, risks, uncertainties and other factors that may cause
the Company's actual performance to differ materially from that
described in or indicated by the forward looking statements. Those
risks include, but are not limited to, risks that the integration
of Etratech into the Company will be more costly or difficult than
expected, existing customers of Etratech will decide not to do
business with the Company, the forecasts and growth estimates of
Etratech were overly optimistic, unknown liabilities of Etratech
not covered by indemnities are discovered, new products may not be
feasible, sales may not increase, additional financing requirements
may not be available, new competitors may arise, currency exchange
rates may change, and adverse conditions in the industry in which
the Company operates may negative affect its results. The
foregoing risks should be read in conjunction with other cautionary
statements included herein, as well as in the Company's annual
report on Form 10-K for the year ended December 31, 2016 and subsequent reports filed
with the Securities and Exchange Commission. Except as required by
law, the Company expressly disclaims any obligation or undertaking
to update any forward-looking statements to reflect any change in
its expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is
based.
Investor Relations Contact
investors@gentherm.com
248-308-1702
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SOURCE Gentherm