Scanfil (SCANFL) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition accelerates expansion in Asia Pacific, adding sites in Australia and Malaysia and enhancing geographic diversification.

• Diversifies and strengthens customer base, providing access to new customers and supporting growth in fast-growing markets.

• SRX Global’s expertise in complex box build, system integration, and high-mix, low-to-medium volume production aligns with strategic focus.

• Cultural and operational similarities expected to facilitate smooth integration.

• Enhances offering in MedTech, Life Science, Energy, and Cleantech sectors, supporting value creation and supply chain excellence.

Financial terms and conditions

• Purchase price is EUR 23.3 million (USD 25.7 million), paid in cash from liquid assets.

• Earn-out mechanism up to EUR 10.5 million (USD 11.6 million) based on SRX’s profit performance in 2024 and 2025.

• SRX Global’s turnover is EUR 39.0 million, with an operating profit margin of 7.0% for the year ended June 2024.

• Transaction has marginal impact on Net Debt/EBITDA, which remains well below the 1.5x target.

• Acquisition does not affect financial outlook for 2024.

Synergies and expected cost savings

• Synergies expected in procurement, supply chain management, and increased purchasing power.

• Growth opportunities as customers seek manufacturing alternatives in Southeast Asia.

• Enhanced ability for existing customers to expand operations in new Asia Pacific locations.

• Potential for cross-selling and expanding customer relationships across regions.

• Upgraded career and personal development opportunities for employees.