Eltek ASA (Drammen, Norway) has signed an agreement to acquire the Voigt and Haeffner subsidiary of the Röchling Group (Frankfurt, Germany). With the acquisition of Voigt and Haeffner, specialists in power systems for communications networks, Eltek becomes one of the largest telecom power suppliers in Germany, a market that constitutes more than 25% of the total European market for telecom power systems. It will also fortify Eltek’s position as a market leader in Europe.
Eltek will acquire 100% of the shares in Voigt and Haeffner from Röchling for a total price of EUR 3.5 million. EUR 2.5 million will be paid in cash, and the remaining EUR 1 million is payable in 12 months, in cash or shares at Eltek’s choice. Voigt and Haeffner has interest bearing debt of EUR 0.4 million. Eltek’s current operations in Germany, through the subsidiary Gertek, will be integrated with the operations of Voigt and Haeffner. Following the acquisition, Eltek’s level of revenue will grow by close to 15%, based on the financial performance of the two companies in the 1st half year 2003. Eltek’s revenue in Europe will increase by more than 30%. The acquisition price is EUR 3.5 million. Voigt and Haeffner will be maintained as the company and brand name as part of the Eltek Group.
Eltek CEO Morten Angelil stated, “This acquisition is strategically important for Eltek. It will position us as one of the leaders in the large German market, broaden our customer base and improve our ability to meet the growing global needs of the telecommunications industry. Germany is a key market in Europe, and we are now in a position to leverage the full strength of our international organization to serve our customers in Germany, as well as in Central and Eastern Europe. We will also become a more valuable partner for German-based companies with international activities. In addition, there will be cost and productivity synergies through combined research and development efforts and consolidated manufacturing and logistics processes, as well as through a consolidation with Eltek’s existing operations in Germany.”
