The acquisition of Ewellix, an affiliate of the Triton Fund V will strengthen Schaeffler’s market position in the linear business.
Automotive and industrial supplier Schaeffler will buy the Ewellix Group, a supplier of linear technology components and systems, for €702m it said in a statement.
The acquisition of Ewellix, an affiliate of the Triton Fund V will strengthen Schaeffler’s market position in the linear business in particular, it said.
Schaeffler will take on €120m of Ewellix debt in addition to the nominal purchase price of €582m, it said, adding it would make the purchase using its own resources and borrowing.
The buyer expects the acquisition to boost its earnings per share figure to a mid-single digit figure by early in 2024, it said.
The deal could complete in late 2022 if it approved by competition regulators.
Ewellix, based in Gothenburg, Sweden, is a market leader in electromechanical industrial actuators, lifting columns and roller screws, Schaeffler said, products which are used in robotics, the medical field and in mobile machinery.
Ewellix sales and R&D teams have a workforce of around 1,200 across six production and customising sites and they will work closely with Schaeffler’s industrial team to generate synergies, the statement said.
“This acquisition represents a further step in the diversification of our business as a global automotive and industrial supplier and will put us in an even stronger position to invest in attractive growth markets,” said Schaeffler AG Chief Executive Officer Klaus Rosenfeld.
Schaeffler expects linear technology to be a major driver of growth in the global industrial technology business in the coming years with further potential demand from industrial automation and the food and drinks industry.
Ewellix production and customising sites are located across the USA, Europe and Asia. It generated revenues of €216m in 2021 and is on track to raise this to €250m this year, Schaeffler said.
The acquisition will enable Schaeffler to focus on three key trends in its industrial business, namely replacement or supplementing of hydraulic and pneumatic solutions with electromechanical systems, a drive to optimise efficiency and a shift towards automation and deployment of robotics.