Jenoptik has announced the acquisition of Canadian company Prodomax Automation Ltd. whose focus is machine integration and process automation in the automotive industry. The combination of automation solutions and laser processing machines will enable Jenoptik to tap into additional growth potential in advanced manufacturing.
Jenoptik has entered into an agreement to acquire 100 percent of Prodomax for a consideration of slightly below 2x expected sales, or around 7x expected 2018 EBITDA. Closing is expected within the next few weeks.
Prodomax, founded in 1971 and headquartered in Barrie, Ontario, Canada, employs about 180 staff and is specialized in process automation for the automotive industry. With the acquisition Jenoptik strengthens its position as a full-service turnkey provider of complex automated manufacturing solutions.
Prodomax will not only benefit from Jenoptik’s extensive expertise in efficient, precise and safe 3D laser processing, a technology that becomes ever more important in automated manufacturing environments, but also from the Group’s financial strength and its global reach.
In addition, Prodomax benefits from the strong US presence of the Jenoptik Group: “In combination with FLA’s automation solutions and the laser processing business we can evolve into a global production integrator. Together with Jenoptik, we will be able to win new customers, extend our know-how to other production steps in the manufacture of, for example, doors or tailgates, and to gradually transfer our competencies to other industries”, say Don Leslie and Carolyn Garvey, Co-CEOs of Prodomax.
Prodomax, has a history of strong growth and excellent operating efficiency. In its fiscal year 2017 (Nov. 1, 2016 – Oct. 31, 2017) the company’s revenue was some 65 million Canadian Dollar (approx. 42 million euros) with a profitability clearly above Jenoptik’s Group average.