Hanzas Elektronika (“HE”) acquired Sweden’s 5th largest electronic manufacturing services company Elektromekan i Årjäng AB from Westergyllen AB. This transaction is first of its kind and scale in Latvian electronics industry. Takeover took place on November 30, 2007. HE is a portfolio company of Baltic SME Fund, managed by BaltCap Management, since 2002.
SIA Hanzas Elektronika (HE) is the largest electronic manufacturing services (EMS) company in Latvia, headquartered in Ogre and operating a subsidiary in Ventspils, named Ventspils Elektronikas Fabrika. HE launched its operations in year 2001. During six years of operations two factories were built, sales reached EUR 7,3 million in 2006 and employees increased from 7 to 160. As a result of this transaction the consolidated sales will be EUR 33 million in 2007.
Elektromekan is one of the biggest EMS companies in Sweden and has been historically large supplier to Ericsson and SonyEricsson. After telecommunication crisis company has been restructured and now has more business in industrial sector that is rapidly growing.
Elektromekan’s customers include Kapsch TrafficCom, Husquarna, Atlas Copco, Flir, GE and other.
The purchase of Elektromekan is a step that will accelerate further growth of Hansa Electronics. “The combination of Hanzas Elektronika and Elektromekan creates a competitive group, with a stable financial base and a broad service offering that will benefit the companies’ customers and employees in the future”, says Mr. Dagnis Dreimanis, partner of BaltCap.
“We are highly pleased to have the opportunity to build a strong Nordic/Baltic group in the EMS industry. The two companies complement each other well and share the common values of efficiency and customer value”, says Mr. Ilmars Osmanis, Managing Director of Hanzas Elektronika. “The joint expertise combined with production in Sweden and Latvia creates favourable conditions for strong growth going forward. Elektromekan holds a strong position on the Swedish market, with skilled engineers, management and a solid organisation.”
Transaction was financed with the help of Nordea Bank Latvia and Hansa Investment Funds.
Besides BaltCap, other owners are Swedish entrepreneur Åke Hörnell, through his company Hörnell Teknikinvest AB and Proditor Sweden AB and company’s founder and managing director, Ilmars Osmanis.
For additional information please contact:
Ilmars Osmanis Chairman of the Board Hansa Electronics
Tel: +371 29 203 083
Dagnis Dreimanis Partner
Tel. +371 7 214 226