NOTE acquires modern electronics factory in Bulgaria
NOTE is expanding its production capacity by acquiring all shares in Bulgarian electronics manufacturer ATM Electronics. This acquisition will give NOTE its second plant in Eastern Europe, which is expected to satisfy a rapidly growing need for cost-efficient production close to customers in Europe.
Like NOTE, ATM Electronics focuses on long-term customer partnerships, high quality and good delivery precision. Its main operation in Sofia operates in modern premises fully customised for electronics manufacture. In nearby Petrich, NOTE conducts large-scale electronics assembly. Customers include both major international industrial companies and local customers. The business model is currently based on the processing of materials (electronic components) owned by customers. The company's sales today thus essentially consist of services (”value-add”) without materials. On an annual basis, these sales amount to approximately SEK 40 million, with an operating margin of approximately 81%.
NOTE expects demand for electronics manufacture in Europe to continue to progress strongly in the coming years. Accordingly, NOTE sees great potential to significantly grow production in ATM Electronics and simultaneously expand its customer offering to include complete PCBAs and turnkey products.
The purchase price, after deducting existing liabilities, is approximately SEK 36 million. The purchase price will be paid in cash based on NOTE's strong balance sheet. The current principal owner Sergej Shardin, who has successfully developed the company over many years, will continue in his role as CEO of the business. The number of employees is approximately 80.
”NOTE is continuing to progress strongly. We are enthusiastic about this acquisition, which in addition to adding another profitable plant to the group, also expands our manufacturing capacity in Eastern Europe. We see great value in expanding our ability to offer our existing customers advanced electronics manufacturing in a highly cost-efficient part of Europe. Together with existing customers, staff and management in Bulgaria, we look forward to developing the business further and continuing our profitable growth journey”, says Johannes Lind-Widestam, President and CEO of NOTE.
”I've come to know NOTE as a company that shares our core values of high quality and customer focus. I see major benefits for us and our customers in becoming part of NOTE, not least on the sourcing side. We have strong customer relationships, and I'm looking forward to continuing to develop our plants in Sofia and Petrich together with other NOTE operations.”, says Mr Sergei Shardin, Managing Director of ATM Electronics OOD.
For further information, please contact:
Johannes Lind-Widestam, President and CEO, tel. 070-541 72 22
Frida Frykstrand, Finance Director, tel. 070-462 09 39
About NOTE
NOTE is one of northern Europe's leading partners for electronics manufacturing. NOTE manufactures printed circuit boards (PCBA), sub-assemblies and complete products (box build). Its customer offering covers the whole product lifecycle, from design to after-sales. NOTE is established in Sweden, Finland, the UK, Estonia, Bulgaria and China. Sales in the last 12 months were SEK 3,687 million and the group has some 1,400 employees. NOTE is listed on Nasdaq Stockholm. For more information, please visit www.note-ems.com.
This information is information that NOTE AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of Johannes Lind-Widestam, on 13 April 2023 at 13.00 CET.