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NCAB Group has acquired PreventPCB, one of the leading PCB suppliers in Italy, for SEK 185 million. Based in Vergiate, PreventPCB also serves customers in Switzerland. PreventPCB caters to customers in the HMLV (high-mix low-volume) segment, with a strong quality focus and its own laboratory.
In 2019, PreventPCB posted a turnover of SEK 225 million and an EBITA of a little over SEK 30 million. The company has 22 employees: 12 located in Italy and 10 in China.
The purchase price of SEK 185 million corresponds to a multiple of approximately six times EBITA before potential synergies. A further earn out potential of SEK 25 million may be added if certain sales targets are met in 2021. The acquisition will be accretive to earnings per share in NCAB Group in 2021. The combined net sales of PreventPCB and NCAB Italy will be approximately SEK 250 million, with a total of 21 employees in Italy. Synergies are expected in the areas of purchasing power, payment terms and factory management. The acquisition is financed by own funds in cash.
"We are very pleased to have acquired PreventPCB. The Italian PCB market is one of the largest in Europe and in a process of change. It is an important component of NCAB's strategy to actively participate in the consolidation of the market. PreventPCB is a company NCAB has known for a long time and has an impressive reputation for their quality and service. With this acquisition, our combined entity will make NCAB a leading supplier of PCB’s into the Italian and Swiss PCB markets and will create a strong player delivering high quality, high reliability and market leading customer service. PreventPCB will be integrated with NCAB Italy which is part of NCAB’s European segment, and the Prevent China team will be incorporated into NCAB’s extensive factory management team in China,” says Peter Kruk, CEO of NCAB Group.
Flavio Vergani, former owner and Chairman of PreventPCB, explains, "We are happy to be joining forces with NCAB Group. This is very positive both for our customers and employees. PreventPCB is a customer oriented organization with a strong focus on quality, reliability and service. Joining with NCAB will give our customers access to the best technology and their extensive factory base in China, Taiwan and Europe, as well as increased resources and competence worldwide. As the PCB supply market continues to develop this is an excellent time to take this step and grow together. The future value will benefit from the collaboration with PreventLAB, a laboratory of technological excellence and digital innovation, which provides services increasing the reliability of our customers’ products."