Efore Completes its Acquisition of Roal Electronics

July 31, 2013 by Jeff Shepard

Efore Plc has completed its acquisition of all the shares of Italian-based Roal Electronics S.p.A. The purchase price was EUR 9.7 million. Sixty per cent of the purchase price was in cash and 40 per cent in 5,243,243 Efore shares valued at EUR 0.74 per share. Efore is financing the deal with long and short term loans and cash reserves. The Roal acquisition is a key part of Efore's strategy to grow the industrial business sector and balance its businesses. Roal will continue to operate as a separate brand within Efore and will continue to design and manufacture standard and custom power products for industrial applications. The transaction opens new growth opportunities like the fast-growing power products market, LED drivers, to Efore.

Vesa Vähämöttönen, President and CEO of Efore Plc: "This transaction fits perfectly to Efore's strategy and is a major step in our efforts to grow the industrial sector. Roal has a strong clientele in Europe and North America which enables Efore's breakthrough in industrial sector."

The transaction is expected to enable an optimization of production capacities, production locations and supply chains. In addition, the transaction will generate synergies in procurement, logistics, IT and in other support functions. Annual estimated synergy benefits from material purchases are EUR 1.5 million and reachable after 12 months. No significant integration costs are expected.

Roal was established in 1985 and it employs approximately 350 people. Its headquarters and R&D are based in Castelfidardo, Italy and the production unit is in Tunis, Tunisia. Sales and marketing operations are located in Europe, United States and China. The company's net sales amounted to EUR 39.5 million and EBIT to EUR 0.5 million in 2012, the corresponding figures for 2011 were 49.2 million and 1.0 million, respectively. Net debt position at year end 2012 was EUR -4.2 million. Consolidation of Roal financials into Efore Group is planned to start from the beginning of July 2013.

"Efore and Roal complement excellently each other both geographically and by product segments. The companies share same core competencies and there are no overlaps between customer relationships or products." adds Alessandro Leopardi, CEO and General Manager of Roal Electronics S.p.A.