Nolato acquires US-based EMC company
Nolato has signed an agreement to acquire US-based Ja-Bar Silicone Corporation. The company, which has annual sales equivalent to approximately SEK 150 million with good profitability, strengthens Nolato’s offering in process- and materials-based electronics shielding solutions for electromagnetic compatibility or ‘EMC’. The acquisition provides Nolato with complementary production technologies, an expanded customer base and a stronger presence on the American continent.
Ja-Bar has a wide range of shielding products in electrically conductive materials, including gaskets, seals, ventilation panels, optical windows and mesh-reinforced materials. The company has a very broad customer base, with over 500 customers. Customers include a number of world-leading operators in sectors such as the aerospace, automotive and medical industries. The company is estimated to generate sales equivalent to around SEK 150 million in 2019 with good profitability.
“Continued strong market growth is expected in EMC. We’re seeing a rising need for applications and products that can be tailored to 4G and 5G networks as the number of new connected products grows. New business opportunities are also being generated as electronic systems in vehicles increasingly require both EMC shielding and heat dissipation,” commented Nolato President and CEO Christer Wahlquist.
Ja-Bar has around 70 employees at its New Jersey plant in the United States. The company was established in 1965 and has been family-owned ever since.
“Acquisitions are, and have long been, an important part of our growth strategy, and we are continually working to boost shareholder value by identifying high-quality companies that complement our offering, hold solid market positions and have a high level of technical expertise. The acquisition of Ja-Bar provides us with complementary production technologies, an expanded customer base and a stronger presence on the American continent.”
The transaction is expected to be completed in November, when the company will also be consolidated into the Group. The transaction is conditional on the requisite regulatory approval. The acquisition is expected to have a marginal positive effect on Nolato’s earnings per share for the current year. Ja-bar’s operations will be reported under the Nolato Integrated Solutions business area.
The purchase price is approximately SEK 95 million (debt-free basis) and the acquisition will be funded by using existing credit agreements.
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For further information, please contact:
Christer Wahlquist, President and CEO, +46 (0)705 804848 Per-Ola Holmström, CFO, +46 (0)705 763340
Nolato is a Swedish group with operations in Europe, Asia and North America. We develop and manufacture products in polymer materials such as plastic, silicone and TPE for leading customers within medical technology, pharmaceuticals, consumer electronics, telecom, automotive, hygiene and other selected industrial sectors. Nolato’s shares are listed on Nasdaq Stockholm in the Large Cap segment, where they are included in the Industrials sector.