Elma acquires Trenew to Strengthen System Business
The Elma Group has acquired the Swiss company Trenew Electronic AG in Rüti ZH, operating in the system integration business, retroactively as per January 1, 2015. The contract was signed on November 9, 2015. Besides the offering of embedded computing systems and electronic packaging, Trenew Electronic is an expert for power supplies. With a production site in Rüti ZH und own sales staff in Germany and Switzerland, Trenew Electronic generated revenue of some CHF 19 million in 2014 with about 40 employees. The integration of Trenew will have a positive effect on Elma's growth and profitability. Trenew Electronic will be consolidated into the Elma Group from November 2015.
Trenew Electronic was founded in 1988 by the previous owner and CEO Peter Hotz and is active Europe-wide in the business of embedded computing systems, power supplies, electronic packaging, electronic engineering as well as assembling and testing. Trenew offers their customers single components or entire turnkey systems. They provide a range of services which include engineering, production and the distribution of components and systems with focus on the markets in Switzerland, Germany and Austria.
With almost 30 years of experience in a variety of markets and applications Trenew responds with flexibility and efficiency to individual customer demands â€“ a strategy that they share with Elma and thus will perfectly fit into the structure of the Elma Group.
As a solution focused Group, Elma develops and produces innovative and customized components and system solutions worldwide. With the acquisition of Trenew, Elma continues its growth strategy to further develop and expand the system business and strengthens its know-how in the development and implementation of integrated system solutions. At the same time Elma will enhance its market position in standard and customized solutions in the Electronic Packing business. In addition, the Elma Group will enter the power supply market through Trenew and plans to expand this market with existing engineering knowhow.
In a first phase, Trenew Electronic will continue to operate independently. In order to ensure a successful integration into the Elma Group, Peter Hotz will remain CEO with operational responsibility. The Board of Directors will propose to the Annual General Meeting 2016 to elect him as a member to the Board of Directors of Elma Electronic AG.
Elma expects synergies by focusing on shared target markets and from the worldwide distribution of the expanded product portfolio through Elmaâ€™s international subsidiaries. The takeover will take effect retroactively as of January 1, 2015. This acquisition will be consolidated into the Group from November 2015 for the first time and will thus contribute around 2 months to sales and earnings to the Elma Group for the business year 2015. Based on todayâ€™s knowledge, Elma expects that this acquisition will not have any material impact on the Elma Groupâ€™s sales and earnings in the current business year. However, for 2016, significant sales and profit improvements are being expected. Elma finances the acquisition by using bank loans which were concluded without financial covenants. An increase in capital is therefore not needed.
Martin Wipfli, Chairman of the Board of Directors of Elma, is pleased with the acquisition and emphasizes: â€œWith this acquisition Elma increases its market presence in Switzerland and its growth prospects in Europe significantly. We are thus expanding our product offering to our customer.â€
Peter Hotz, CEO of Trenew, is convinced: â€œElma and Trenew form a prefect connection, both with regard to our employees as well as our customers. Our additional expertise in the fields of engineering, computing and power supplies complements the existing range perfectly. Elma will be strengthened by this merger and will be able to further expand its European market shares. I will personally support and accompany this expansion.â€
The acquisition contract was signed on November 9, 2015 by both parties. The parties agreed to not disclose the purchase price.