Incap Oyj (HLSE:ICP1V) entered into an agreement to acquire Pennatronics Corporation for $26.3 million on July 1, 2023. The enterprise value of the acquired company is 18.6 million. In addition to this, approximately $1.6 million will be paid with Incap's shares to the owners of the acquired company. The acquisition agreement includes an additional payment in the form of a potential earn-out that will be paid in 2024 depending on Pennatronics' business performance during the financial year ending in March 2024. Its maximum amount is $3 million based on Pennatronics' EBITDA during the financial year ending in March 2024. Incap may at a later stage, subject to market conditions, explore the option of equity financing to optimize its capital structure. Pennatronics' revenue for the financial year that ended on 31 March 2023 was $30 million, and EBITDA was $2.9 million, or 10 percent of net sales.
The closing of the agreement will occur after the 4th of July festivities in the U.S. The closing is not subject to any approval by competition authorities or any other conditions precedent. Pennatronics' figures will be included in Incap Group's reporting as of July 2023. The transaction is estimated to have a positive impact on Incap Corporation's revenue in 2023. Additionally, the transaction is expected to have a slightly positive impact on operating profit (EBIT) due to one-time integration and transaction costs as well as the purchase price allocation amortization. The amount of integration costs incurring will be specified in more detail during the financial year 2023.
After the acquisition, the former owners of Pennatronics, Ralph B. Andy and Keith D. James, are committed to support Incap over the transition period.
Incap Oyj (HLSE:ICP1V) acquired Pennatronics Corporation on July 5, 2023. Pennatronics Inc. will be named as Incap Electronics US, Inc. and the company will start the brand change process.
Incap Oyj is a Finland-based company engaged in the design and manufacture of electronic, mechanical and electromechanical components and assemblies. It provides such services as: Prototyping and Engineering, Printed circuit board (PCB) Assembly Manufacturing, Box-Build Assembly, Cable and Wire Harness Assemblies, Enginering Services and repair and overhaul services. Incap Oyj is a parent entity of The Incap Group, which comprises Incap Electronics Estonia OU, Euro-ketju Oy, Incap Hong Kong Ltd and Incap Contract Manufacturing Services Pvt Ltd, Incap Holdings UK Ltd, Incap Electronics UK Ltd and Incap Electronics Slovakia. The Company provides electrical hardware and services through its four factories located in the United Kingdom, Estonia, India and Slovakia.
INCAP OYJ 
