SCHENEFELD, GERMANY -- A Scanfil subsidiary has signed an agreement to acquire all shares in German contract manufacturer Schaltex Systems. Scanfil EMS Oy will pay EUR 6.6 million in cash for Schaltex, which is located in Schenefeld, near Hamburg.

The transaction is effective immediately and the acquired business will be incorporated into Scanfil's consolidated financial statements starting April 1.

Schaltex had net sales of EUR 20.8 million in 2013 and the deal is expected to be immediately accretive to Scanfil's sales and operating profits.

Scanfil upped its 2014 revenue estimates by 11% to 18% and raised its operating profit outlook to EUR 11 million to 15 million. The firm previously guided for four to 10% sales growth and operating profits of EUR 10 million to 14 million.

"Profitable growth is one of our main targets," CEO Petteri Jokitalo said. "This acquisition will give a significant boost to Scanfil's growth strategy by bringing in remarkable new customers and strengthening our market position in Germany, maybe the most important market in the EMS industry in Europe. We also see synergy benefits in process development, sourcing and IT. Schaltex has long-term relationships with its customers and an established position as a high-mix, low-volume manufacturer and complex systems integrator. The production capacity of Scanfil's facilities in Estonia, Finland, Hungary and China will, in turn, benefit Schaltex's customers."

Schaltex was founded in 1976 and concentrates on high-mix, low-volume electronics manufacturing services. It employs 80 workers and operates from a production site in Schenefeld near Hamburg. Schaltex focuses on the value-added assembly of complex systems and test field operations, primarily serving customers in the life sciences and analytical instrumentation markets.

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