HELSINKI -- Scanfil yesterday signed an agreement to acquire a German EMS company for cash and stock, giving it further inroads to the Central European market.

Under terms of the agreement, Scanfil will pay 10.25 million euros ($11.42 million) for Hasec-Elektronik GmbH. Scanfil will finance the acquisition using cash plus 2.2 million euros ($2.45 million) worth of stock issued to Hasec's ownership. The acquisition is subject to customary closing conditions such as merger control filing and is expected to be finalized during the second quarter.

The acquired business will be incorporated into Scanfil's consolidated financial statements after the closing of the acquisition.

Hasec was founded in 1991 and has about 200 employees. It maintains a production site in Wutha-Farnroda, near Eisenach in central Germany. 2018 sales were up 7% to 37.1 million euros ($41.3 million).

The acquisition is expected to be accretive to Scanfil's sales and have a slightly positive impact on operating profit in 2019.

"This acquisition will give a significant boost to Scanfil’s growth strategy by bringing in remarkable new customers and further strengthening our market position in Germany and wider in Central Europe," said says Petteri Jokitalo, CEO, Scanfil. "Scanfil and Hasec will create an attractive EMS partner for German and Central European customers with strong local factory presence, design capability and access to global factory network and supply chain. Hasec has long-term relationships with its large amount of customers and an established position as a high-mix, low-volume manufacturer and complex systems integrator. Scanfil’s existing Hamburg factory will complement Hasec's offering in Germany and in addition Scanfil’s global factory network will benefit Hasec's customers.”

“Our companies share the same ideology and core strategy. Scanfil’s broad service offering and global footprint enable us to provide even better value to our customers. I also believe that being part of such a well-established global EMS, provides our employees with new and attractive opportunities,” comments Marco Zimmerman, CEO, Hasec.

The deal would boost Scanfil above Videoton to become the 35th largest EMS company in the world, according to the CIRCUITS ASSEMBLY Top 50.

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