ELMA ELECTRONIC AG Trenew Electronic (www.trenew.ch) was founded in 1988 by the previous owner and CEO Peter Hotz and is active Europe-wide in the business of Embedded Computing Systems, Power Supplies, Electronic Packaging, Electronic Engineering as well as Assembling & Testing. Trenew offers their customers single components or entire turnkey systems. They provide a range of services which include engineering, production and the distribution of components and systems with focus on the markets in Switzerland, Germany and Austria. With almost 30 years of experience in a variety of markets and applications Trenew responds with flexibility and efficiency to individual customer demands - a strategy that they share with Elma and thus will perfectly fit into the structure of the Elma Group.
As a solution focused Group, Elma develops and produces innovative and customized components and system solutions worldwide. With the acquisition of Trenew, Elma continues its growth strategy to further develop and expand the system business and strengthens its know-how in the development and implementation of integrated system solutions. At the same time Elma will enhance its market position in standard and customized solutions in the Electronic Packing business. In addition, the Elma Group will enter the power supply market through Trenew and plans to expand this market with existing engineering know- how.
In a first phase, Trenew Electronic will continue to operate independently. In order to ensure a successful integration into the Elma Group, Peter Hotz will remain CEO with operational responsibility. The Board of Directors will propose to the Annual General Meeting 2016 to elect him as a member to the Board of Directors of Elma Electronic AG.
Elma expects synergies by focusing on shared target markets and from the worldwide distribution of the expanded product portfolio through Elma's international subsidiaries. The takeover will take effect retroactively as of January 1, 2015. This acquisition will be consolidated into the Group from November 2015 for the first time and will thus contribute around 2 months to sales and earnings to the Elma Group for the business year 2015. Based on today's knowledge, Elma expects that this acquisition will not have any material impact on the Elma Group's sales and earnings in the current business year. However, for 2016, significant sales and profit improvements are being expected. Elma finances the acquisition by using bank loans which were concluded without financial covenants. An increase in capital is therefore not needed.
Martin Wipfli, Chairman of the Board of Directors of Elma, is pleased with the acquisition and emphasizes: 'With this acquisition Elma increases its market presence in Switzerland and its growth prospects in Europe significantly. We are thus expanding our product offering to our customer.'
Peter Hotz, CEO of Trenew, is convinced: 'Elma and Trenew form a prefect connection, both with regard to our employees as well as our customers. Our additional expertise in the fields of engineering, computing and power supplies complements the existing range perfectly. Elma will be strengthened by this merger and will be able to further expand its European market shares. I will personally support and accompany this expansion.'
The acquisition contract was signed on November 9, 2015 by both parties. The parties agreed to not disclose the purchase price.
Media Release Elma Electronic AG, Wetzikon November 10, 2015
Due to the recent events, Elma invites the media and analyst to a conference today, Tuesday, November 10, 2015 at 10.30 am in the Convention Point of SIX Swiss Exchange at Selnaustrasse 30 in 8001 Zurich. Martin Wipfli, Chairman of the Board, and Fred Ruegg, CEO, will inform you about the acquisition and stay at your disposal for your questions.
Elma Electronic AG Hofstrasse 93
8620 Wetzikon
Fred Ruegg Edwin Wild
CEO Elma Group CFO Elma Group
Phone +41 44 933 43 04 Phone +41 44 933 42 45
fred.ruegg@elma.comedwin.wild@elma.ch
Elma Electronic is a worldwide provider of solutions for the construction of enclosure systems for electronics. The product range extends from electronic packaging components to modular enclosures, cabinets and backplanes through to complete system platforms. Elma also produces rotary switches for electronic applications. The flexibility that allows customer requirements to be met and our many years of experience in the development and production of components and systems for complex applications distinguish Elma as a reliable partner.
Please visit our website: www.elma.com
Trenew Electronic AG is a leading provider for Embedded Computing Systems, Power Supplies, Electronic Packaging, Electronic Engineering, and Assembling & Testing. They provide an extensive range of services which include the company's engineering, production, and distribution of components and systems worldwide. The team has more than 30 years of experience in a variety of markets and applications - from CAD services to complex development with EMC tests. This comprehensive know-how enables Trenew to respond flexibly and efficiently to customers' needs, being an experienced specialist for individual solutions as a general contractor.
Please visit our website: www.trenew.ch
Peter Hotz, Swiss, born 1954
Career: Since 1988 founder and CEO of Trenew Electronic AG with more than thirty years of experience in electronics development for industrial, medical and optical equipment
Other activities: Peter Hotz is Chairman of the Board of Directors of Naviswiss AG and member of the Board of noonee AG and Sven Hotz AG
DisclaimerThis communication contains statements that constitute 'forward-looking statements'. In this communication, such forward-looking statements include, without limitation, statements relating to our financial condition, results of operations and business and certain of our strategic plans and objectives. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors which are beyond Elma's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors detailed in Elma's past and future filings and reports and in past and future filings, press releases, reports and other information posted on Elma Group companies' websites. Readers are cautioned not to put undue reliance on forward-looking statements, which speak only of the date of this communication. Elma disclaims any intention or obligation to update and revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This Media Release is published in German and in English. Should the English translation differ from the German original, the German version is binding.
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