{"id":15893,"date":"2004-12-15T14:22:39","date_gmt":"2004-12-15T13:22:39","guid":{"rendered":"https:\/\/www.note-ems.com\/press-releases\/note-forvarvar-finsk-kontraktstillverkare\/"},"modified":"2025-12-02T08:28:40","modified_gmt":"2025-12-02T07:28:40","slug":"note-in-favour-of-finnish-contract-manufacturer","status":"publish","type":"mfn_news","link":"https:\/\/www.note-ems.com\/en\/press-release\/note-in-favour-of-finnish-contract-manufacturer\/","title":{"rendered":"NOTE acquires Finnish contract manufacturer"},"content":{"rendered":"
NOTE has today signed an agreement with Finnish contract manufacturer Point Product Oy to acquire its operations in Finland and Estonia. The acquired operations have sales of some SEK 90 m in 2004 and provide a significant capacity increase for low-cost production outside Sweden. The acquisition, which will be completed by January 2005, is expected to result in integration costs of approximately SEK 1 million, which will be charged to the first quarter of 2005. The acquisition is expected to be accretive to earnings and earnings per share from the second quarter of 2005, well in line with the Group's financial targets.<\/strong><\/div>\n

Point Product is a Finnish supplier of Electronics Manufacturing Services (EMS) that has built its group with a concept similar to NOTE's. A small production unit in Hyvink\u00e4\u00e4, just north of Helsinki, manufactures advanced prototypes and small production batches. In the Estonian coastal town of P\u00e4rnu, NOTE has a larger plant for low-cost production. The acquisition in Finland gives NOTE another important market in the Nordics. The plant in Estonia will be integrated into the NOTE group's low-cost units (Industrial Plants). The deal also includes 50% ownership of a small mechanical engineering unit in Estonia.<\/p>\n

The deal in brief
\nNOTE is taking over Point Product Oy's operations in Hyvink\u00e4\u00e4 through an asset deal with NOTE's newly established subsidiary NOTE Hyvink\u00e4\u00e4 Oy. All personnel will be taken over. Point Product's wholly owned subsidiary in Estonia, Paitec Elektroonika O\u00dc, which will be renamed NOTE P\u00e4rnu O\u00dc, will be acquired simultaneously. In 2004, the acquired operations are expected to achieve sales of approximately EUR 10 million with an operating margin of approximately 91 per cent. The business has some 40 employees in Finland and 130 in Estonia. Customers are mainly in the industrial and telecoms segments.<\/p>\n

Terms of payment
\nThe purchase price for the business consists of a fixed and a variable part, the latter based on the earnings trend. The purchase price is expected to amount to approximately SEK 18 million for the business (goodwill) and approximately SEK 10 million for assets in the form of machinery and working capital. The main part of the transaction will be paid in cash with part of the proceeds from the rights issue in the spring and will be finalised by January 2005.<\/p>\n

Impact on the NOTE group
\nThe Finnish EMS market is the second largest in the Nordic region, corresponding to some 2\/3 of the Swedish market. In the autumn of 2004, NOTE worked actively towards Finland, including participation in the subcontracting fair in Tampere. The response has been good, and initial deliveries to Finnish customers have started, including ABB and Nokia Research Centre. Local representation is expected to provide the conditions for concluding major contracts in 2005.<\/p>\n

In Sweden, NOTE shifted its focus from volume production to the development, industrialisation and production of small and complex series in the autumn. Some 200 people were made redundant in Sweden, while NOTE's local presence increased, including through establishing a plant in Bj\u00f6rbo, Dalarna. The NOTE group works on volume production outside Sweden under the name Industrial Plants. The acquired unit in Estonia, which has a direct link to Norrt\u00e4lje, Sweden, increases access to low-cost production. This facilitates continued rapid growth.<\/p>\n

Comments on the report
\n\"In the year, we conducted a thorough selection process where we investigated several Finnish contract manufacturers. The most important selection criterion has been to find a company whose concept is similar to NOTE's,\" says Erik Stenfors, President and CEO of NOTE AB.<\/p>\n

\"With the added value NOTE brings, such as ems-ALLIANCE and the equipment company NOTE Components, we expect to be able to increase sales significantly in Finland,\" says Mikko Sajaniemi, CEO of Point Product Oy and incoming CEO of NOTE Hyvink\u00e4\u00e4 Oy.<\/p>\n

For further information contact:
\nErik Stenfors, President and CEO, NOTE AB, tel. 0176-799 01 or 0709-50 80 70
\nMikko Sajaniemi, President and CEO, Point Product Oy, tel. 00358 (0)19 426 66 00<\/p>\n

<\/div>\n
<\/div>\n
\n

Attached files<\/strong>
wkr0001.pdf<\/a><\/p>\n<\/div>\n