Etratech Enterprises, a portfolio company of Argosy Partners, has been acquired by publicly-traded Gentherm for $64 million.
Etratech designs, develops and manufactures electronic controls and control systems for the automotive, RV and marine, security, and medical industries. The company’s capabilities include hardware and software design, prototyping and testing, manufacturing, assembly and final test, and packaging and delivery. Etratech employs more than 400 people worldwide and has manufacturing facilities in Burlington, ON (headquarters) and Shenzhen, China (www.etratech.com).
Etratech had revenues of approximately C$77 million (US$61 million) during the 12-month period prior to the acquisition and the purchase price of US$64 million represents approximately 8.5x trailing 12-months EBITDA.
“I believe that with Gentherm, we’ve found a perfect fit for our global electronics engineering and manufacturing business,” said Michael Desnoyers, the President and CEO of Etratech.
Gentherm (NASDAQ: THRM) is developer and marketer of thermal management technologies that are used in a range of heating and cooling and temperature control applications. The company’s automotive products include variable temperature climate control seats, TrueTherm cupholder and storage bins, and heated automotive interior systems (including heated seats, steering wheels, armrests and other components). Non-automotive products include remote power generation systems, heated and cooled furniture, patient temperature management systems, and industrial environmental test chambers. Gentherm is led by its CEO Daniel Coker and has over 13,000 employees in facilities in the United States, Germany, Canada, China, Hungary, Japan, Korea, Macedonia, Malta, Mexico, United Kingdom, Ukraine, and Vietnam. The company is headquartered near Detroit in Northville, MI (www.gentherm.com).
Argosy Partners invests in manufacturing, distribution or service companies that have enterprise values between C$3 million and C$20 million, sales between C$10 million and C$100 million, and cash flow before interest of at least C$1 million. The firm is headquartered in Toronto (www.argosysinvestments.com). Partner Larry Klar led the transaction for Argosy.
Birmingham, MI-based Angle Advisors (www.angleadvisors.com) was the investment banking advisor to Etratech on this transaction.
© 2017 Private Equity Professional | November 9, 2017
