ETRATECH ENTERPRISES, INC. HAS BEEN ACQUIRED BY GENTHERM INCORPORATED (NasdaqGS:THRM)
Birmingham, Michigan – November 8, 2017 – Angle Advisors is pleased to announce that Etratech Enterprises, Inc. (“Etratech” or the “Company”), has been acquired by Gentherm Incorporated (“Gentherm”). Angle Advisors acted as the exclusive investment banking advisor to Etratech in completing this transaction.
Based in Burlington, Ontario, Etratech specializes in the design, development, and manufacturing of advanced electronic controls and control systems for the Automotive, RV and Marine, Security, Medical and other industries. The Company provides a complete spectrum of vertically integrated electronics solutions, including hardware and software design, prototyping and testing, manufacturing, assembly and final test, and packaging and delivery. Etratech's capabilities help OEM customers rapidly innovate and bring new technologies and products to market. The Company employs more than 400 people worldwide and has manufacturing facilities in Canada and China.
Etratech estimates revenues of approximately $77 million Canadian Dollars (US$61 million) during the 12-month period prior to the acquisition and the purchase price of US$64 million represents approximately 8.5x EBITDA based on trailing 12-months EBITDA at the time of closing.
“We believe that growing our existing electronics capabilities is critical to our success in the broad spectrum of markets in which we participate,” said Gentherm President and CEO, Daniel R. Coker. “The acquisition of Etratech will add new, innovative electronics products and capabilities in our core automotive and medical markets. This will diversify our product portfolio and manufacturing capabilities in new and important areas. We are very excited to add Etratech to an already outstanding electronics business and team.”
“I believe that with Gentherm, we've found a perfect fit for our global electronics engineering and manufacturing business," stated Michael Desnoyers, the President and CEO of Etratech. Larry Klar, a partner at the The Shotgun Fund which held a minority investment in Etratech, also commented, “The Shotgun Fund is proud to have worked with Michael and his team, and we are confident in Etratech's future success as part of Gentherm.”
Michael Desnoyers added, “The shareholders would like to thank the team at Angle Advisors. They did an outstanding job of differentiating our business and completing a global marketing process to find us the very best possible partner. Their industry knowledge and relationships, along with their transaction expertise proved critical to making this a highly successful transaction.”
Gentherm (NASDAQ-GS: THRM) is a global developer and marketer of innovative thermal management technologies for a broad range of heating and cooling and temperature control applications. Automotive products include variable temperature Climate Control Seats, TrueTherm® cupholder and storage bins, heated automotive interior systems (including heated seats, steering wheels, armrests and other components), battery thermal management systems, cable systems and other electronic devices. Non-automotive products include remote power generation systems, heated and cooled furniture, patient temperature management systems, industrial environmental test chambers and related product testing services and other consumer and industrial temperature control applications. The Company is also developing a number of new technologies and products that will help enable improvements to existing products and to create new product applications for existing and new markets. Gentherm 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. For more information, please visit www.gentherm.com.
Angle Advisors, with offices in the United States, Germany, and China, specializes in mergers and acquisitions and capital raising. The firm's professionals have completed 181 transactions since 2009 for multinational corporations, privately-held companies, private equity funds, and public sector clients. For additional information, please visit www.angleadvisors.com.