Jenoptik announces acquisition of Prodomax Automation Ltd. and raises its 2018 revenue guidance

11.07.2018 - 10:02

Jenoptik has entered into an agreement to acquire 100 percent of the Canadian company Prodomax Automation Ltd. for a consideration of slightly below 2x expected sales, or around 7x expected 2018 EBITDA.

The contract has been signed, closing is expected within the next few weeks. Prodomax, founded in 1971 and headquartered in Barrie, Ontario, Canada, employs about 180 staff and is specialized in process automation for the automotive industry. With the acquisition Jenoptik strengthens its position as a full-service turnkey provider of complex automated manufacturing solutions the company has embarked on with the acquisition of Five Lakes Automation (FLA) in 2017. Like FLA, Prodomax will become a part of the Group’s global laser processing business.

Similar to FLA, Prodomax plans and designs automated production lines as well as integrates them in the customer’s manufacturing environment. The services and products around process engineering and implementation include system layout, simulation, hardware controls and software design, robotic handling systems as well as transfer devices. Whilst FLA focusses on small and medium-sized contract business, Prodomax has the capacities and the strong customer basis to pursue larger projects.

Due to the acquisition Jenoptik will be able to tap into new areas of application for its 3D laser machines in future. “With the acquisition of Prodomax and our expertise in laser material processing we take a huge step towards becoming an integrated provider of advanced manufacturing environment”, says Stefan Traeger, President & CEO of JENOPTIK AG.
Prodomax and FLA will not only benefit from Jenoptik’s extensive expertise in efficient, precise and safe 3D laser processing, a technology that becomes ever more important in automated manufacturing environments, but also from the Group’s financial strength and its global reach.

In addition, Prodomax benefits from the strong US presence of the Jenoptik Group: “In combination with FLA’s automation solutions and the laser processing business we can evolve into a global production integrator. Together with Jenoptik, we will be able to win new customers, extend our know-how to other production steps in the manufacture of, for example, doors or tailgates, and to gradually transfer our competencies to other industries”, say Don Leslie and Carolyn Garvey, Co-CEOs of Prodomax.

Prodomax, has a history of strong growth and excellent operating efficiency. In its fiscal year 2017 (Nov. 1, 2016 – Oct. 31, 2017) the company’s revenue was some 65 million Canadian Dollar (approx. 42 million euros) with a profitability clearly above Jenoptik’s Group average. Jenoptik will consolidate future revenues and earnings, including effects from purchase price allocation, pro-rata in 2018.

“With the acquisition of Prodomax announced today and a continuing good demand in the Groups’ business overall, we now see 2018 revenue of Jenoptik to exceed our current guidance for the year. Including the consolidation of the new Canadian company pro-rata for the rest of the year, we expect group revenue to be between 805 and 820 million euros in 2018 against our original guidance range of 790 and 810 million euros”, explains Stefan Traeger. Further details regarding the financial impact of the acquisition will be discussed with the reporting of our H1 results on August 9, 2018.

www.jenoptik.com

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