BILLINSTAD, NORWAY – Kitron has entered into an agreement to acquire BB Electronics for a total of approximately DKK 600 million (US$91 million).

Kitron will acquire 100% of the shares of BB Electronics on a debt- and cash-free basis. The transaction is conditional upon customary closing conditions and is expected to be completed January 2022.

BB Electronics is a full-service electronics manufacturer based in Horsens, Denmark. The group had revenues of about DKK 1 billion (US$151.7 million) in 2021 and has about 750 employees. The company serves industry, telecom and medical and has production facilities in Denmark, China and the Czech Republic.

The combined company will have annual revenues of more than $565 million, according to the CIRCUITS ASSEMBLY Top 50 list of EMS companies.

“BB Electronics gives us a solid position in one more Nordic country and extends Kitron’s footprint in CEE and China,” said Peter Nilsson, president and CEO, Kitron. “The acquisition also provides a pathway to establishment in India. BB Electronics has well run and highly automated manufacturing operations serving a loyal long-term customer base. Its position within higher complexity segments fits perfectly with Kitron's strategy.

“We're impressed with the track record of the BB team and look forward to working together. We expect BB Electronics to continue with very little change. BB CEO Carsten Christensen will join the Kitron group management, maintaining current responsibilities. We expect the transaction to be immediately earnings accretive for Kitron, while also supporting our growth strategy.

“The European EMS industry is highly fragmented, and we're convinced we will be even stronger together as we leverage our individual strengths to continue both companies’ track records of profitable growth.”

“We believe the match with Kitron is excellent and provides an even stronger platform for BB Electronics, including a North American manufacturing presence, which is in strong demand from our existing customer base,” said Carsten Christensen, CEO of BB Electronics. “We look forward to executing on our growth strategy under the Kitron umbrella.”

BB Electronics had net debt of DKK 54.2 million (US$8.2 million) as of Sept. 30, and as of the same period Kitron had net debt of NOK 791 million (US$87.3 million).