STOCKHOLM -- Hanza Holding has acquired Helmut Beyers, an electronics manufacturer in Mönchengladbach, Germany, with approximately 150 employees.

The deal marks a restart for the EMS company's expansion in Germany, which was temporarily put on hold during the pandemic.

Hanza said it paid a price corresponding to the equity in the company, which according to preliminary financial statements amounts to EUR2.7 million ($3.14 million). An additional purchase price linked to an expected increase in sales from the current level for fiscal 2022 and 2023, up to a maximum of EUR2.5 million ($2.9 million). Transaction and integration costs are estimated to total approximately SEK10 million ($1.16 million), which are mainly expected to be charged to the fourth quarter of 2021.

Beyers has estimated sales of approximately EUR18 million ($20.9 million) in 2021, down approximately 10% from 2020 due to the pandemic. Profits have also been negatively affected and the company currently operates at a zero margin.

Hanza has a production facility in Remscheid, Germany, which offers product development, final assembly and manufacturing of mechanics and electronics. The new production unit in Mönchengladbach is located about 7 miles from Remscheid and contributes both competence and capacity within electronics manufacturing.

"Our concept provides us with a good order intake in the Nordic markets and we have continuously strengthened HANZA's other manufacturing clusters," says Erik Stenfors, CEO, Hanza. "During the pandemic, we have been waiting for the German market to reopen. Now we have reached the starting point for expansion in Germany, and we are adding a modern electronics factory in line with our cluster strategy.

Beyers' management will remain in their positions and continue to operate the factory.

"We have kept a close dialogue for some time and have also visited Hanza's cluster in Sweden which has showed us the great benefits that exist with complete and local manufacturing," says Wolfgang Beyers, CEO and former main owner of Beyers. "Hanza's combination of focus on business logic and focus on employee welfare, was ultimately the deciding factor. We look forward to contributing and becoming part of the Hanza Group."

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