KEMPELE, Finnland - PKC Group has signed an agreement for the purchase of shares in the Segu companies. Under the share purchase agreement, PKC Group’s subsidiaries shall purchase all shares in Segu Systemelektrik GmbH (Germany), Segu Polska Sp. z o.o. (Poland) and TZOV HBM Kabel Corp (Ukraine).
The Segu companies in Germany, Poland and Ukraine manufacture and develop wiring harnesses for the automotive and construction equipment sectors. In 2010, the Segu companies generated consolidated net sales of approx. EUR 38 million, EBITDA was EUR 3.8 million and had approx. 1,000 employees at the end of the year. The debt-free purchase price of the Segu companies is EUR 20 million.
The closing of the acquisition is subject to fulfilment of customary terms including Ukrainian competition authority approval. The intention of the Parties is to close the acquisition by 30 April 2011. The acquisition is estimated to have a slightly positive impact on PKC Group's operating profit in 2011.
"The acquisition is continuance to the acquisition carried out in Poland for over two year ago. Segu companies and PKC’s Polish unit will form a business unit servicing the West-European markets with annual sales of about hundred million and about 2,500 employees. In addition to access to interesting new OEMs, the acquisition of Segu companies will bring a strategically important footprint in Germany as well as benefit of scale and increased credibility for PKC. Moreover, Segu companies have excellent technological know-how, which will benefit PKC’s wiring harness business", observes Harri Suutari, President & CEO.
PKC Group has signed an agreement for the purchase of shares in the Segu companies.
