Inission grows in Finland through the acquisition of MLB Electronics Oy
Inission AB (“Inission”), through its wholly owned subsidiary Inission Lohja Oy, has signed an agreement to acquire 100% ownership of MLB Electronics Oy (“MLB”). MLB is one of the most experienced contract manufacturers in Finland with a wide range of services throughout the manufacturing process. With this acquisition Inission will widen its portfolio and strengthen its position and presence in Finland.
The price for acquiring 100% of the MLB shares is EUR 1.7 million with an additional purchase price of maximum EUR 0.6 million based on MLB’s revenue for year 2022 and 2023. The signing took place 21st of January 2022 and closing is planned to the 31st of January 2022.
Overview of MLB
Founded in 1977, MLB is an EMS (Electronics Manufacturing Services) company based in Lohja, Finland with 45 employees. In year 2021 MLB had a revenue of EUR 6.9 million with EBITDA of EUR 0,6 million. The customer portfolio is well distributed and includes customers within industry, MedTech and instruments.
Strategic rationale
Through the acquisition, MLB will be able to improve service and product offering to its existing and new customers in Finland. Inission will widen its customer base, increase competence, capacity, and resources to grow the EMS business in Finland. The acquisition also balances Inission’s customer portfolio both in numbers and industrial segments.
After the acquisition, MLB will be a subsidiary under Inission Lohja and will continue its operations out of their current facilities and organization on short-term basis with the exception that Inission Lohja’s CEO Pekka Väyrynen in addition to his current duties and responsibilities will succeed Rainer Backman as CEO of MLB. In medium-term, the companies will be merged to utilize the beneficial synergies these organizations can provide each other.
The cash transaction is fully financed with loan of EUR 1.7 million by Inission’s bank according to Inission standard terms. The transaction is estimated to have a positive impact on revenue and operating profit (EBIT) of Inission in 2022.
Pekka Väyrynen, CEO Inission Lohja:
– We at Inission Lohja are extremely delighted to see Inission expanding in Finland through MLB acquisition and knowing MLB to be one of the most famous EMS service providers in Finland. Together with Inission’s capabilities and industry knowledge we will be even more focused on high tech and providing machine building industries focused cutting-edge solutions. We at Inission Lohja look for strong co-operation within MLB and professionals at MLB and Inission Lohja are together ready to utilize both unit’s all aspects in order to provide world class customer service.
Rainer Backman, CEO MLB:
– As an electronics manufacturing service provider, we are one of the oldest and most experienced in our field in Finland. We have been working with our customers for 45 years, of which 33 years as a family business. Our values are based on the desire to co-operate an attend to our customer in the best way possible to reach our common goals. Our strengths are customer orientation, agile manufacturing, quality and a staff of experienced professionals. By combining our strengths with Inission, we are able to serve our customers more efficiently, offer a wider range of services and be able to develop our operations in a whole new way. This will ensure that we meet the growing needs of all the sectors in electronics industry. We are looking towards the future with great enthusiasm.
The acquisition will be consolidated as part of Inission financials from the 31st of January 2022.
