Acquisitions

Addtech is constantly on the lookout for companies to acquire and is engaged in discussions with a number of possible companies. During this financial year Addtech made five acquisitions that came into effect during the year. Eight companies were acquired in the previous year. The year's acquisitions were carried out in all business areas and are diverse both in terms of the markets and products covered.

Our three main reasons for acquisitions are so that our:

• Subsidiaries can make small-scale bolt-on acquisitions in order to reinforce existing operations in their niche.
• Business units can expand and build market and/or product positions in selected market segments.
• Business areas can add new market segments in the areas where we see the right conditions for being able to become market leaders. 

Since becoming a listed company in 2001, Addtech has acquired around 80 companies. The following companies were acquired during the year:

• The Rutab Group. On 2 April, 80 percent of the shares in the Rutab group were acquired, forming part of the Energy business area. Rutab is a supplier of electrotechnical materials and components for automation technology, focusing on cable glands, conduits, cable guards and machinery cable. Rutab has around 40 employees and sales of about SEK 150 million.
• Holger Eldfast AB. On 1 July Holger Eldfast AB was acquired, forming part of the Industrial Solutions business area. Holger Eldfast conducts agency operation in fireproof materials, mainly on the Swedish market. The company has two employees and sales of about SEK 15 million.
• Vimex AS. On 6 August Vimex AS was acquired for the Life Science business area. Vimex's business focuses on analysis products for the shipping industry. Vimex has seven employees and sales of NOK 13 million.
• Sittab AB. On 1 October Sittab AB was acquired, forming part of the Industrial Solutions business area. Sittab is a niche player delivering ergonomic solutions for drivers' seats, chiefly for construction machines and buses. Sittab has 26 employees and sales of about SEK 65 million.
• Valnor AS. On 2 December Valnor AS was acquired for the Components business area. Valnor is a technology trading company providing components in the field of valves for instrumentation and piping installation. Valnor has 12 employees and sales of around NOK 50 million.

The total purchase consideration for the year's five acquisitions was SEK 234 million.

The combined effect of the acquisitions on the Addtech Group's net sales was SEK 225 million, on operating profit SEK 15 million and on profit after tax for the period SEK 9 million. If the acquisitions had taken place at 1 April 2013, they would have had an effect of an estimated SEK 300 million on consolidated net sales, about SEK 22 million on operating profit and about SEK 15 million on profit after tax for the year. The acquisitions were made using an average EV/EBIT multiple of about 5. The number of Addtech employees increased by 87 people as a result of the year's acquisitions.