Laser processing system manufacturer Jenoptik (Jena, Germany) has entered into an agreement to acquire Prodomax Automation (Barrie, ON, Canada) for a consideration of slightly below 2X expected sales, or around 7X expected 2018 earnings before interest, taxes, depreciation, and amortization (EBITDA). With the acquisition, Jenoptik will be able to tap into new areas of application for its 3D laser machines in the future.
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Prodomax, founded in 1971, employs about 180 staff and specializes in process automation for the automotive industry. The company plans and designs automated production lines as well as integrates them in the customer's manufacturing environment. The services and products around process engineering and implementation include system layout, simulation, hardware controls and software design, robotic handling systems, and transfer devices. The company also has the capacity to pursue larger projects.
With the acquisition and continuing demand in Jenoptik's overall business, the company now sees its 2018 revenue to exceed its current guidance for the year. The company expects group revenue to be between 805 and 820 million euros in 2018 against its original guidance range between 790 and 810 million euros, explains Stefan Traeger Chairman of the Executive Board at Jenoptik.
Closing of the transaction is expected within the next few weeks.
For more information, please visit www.jenoptik.com and www.prodomax.com.