Täby, 1 August, 2016 – Mycronic AB (publ), has signed an agreement to acquire 75
percent of Shenzhen Axxon Automation Co.,Ltd (Axxon) for a cash consideration of
approximately SEK 430 million. The acquisition will be financed through own
funds. As part of the agreement Mycronic will acquire the remaining shares of
the company in two steps – an additional 5 percent will be acquired within this
year and the last 20 percent after three years. The purchase price for the last
part after three years will be set based on parameters such as growth and
earnings, which may include changes compared to the current valuation.
Axxon develops, manufactures, and sells dispensing equipment for the electronics
industry and has obtained a leading position in the SMT market in China in a
short time. China represents approximately 40 percent of the global dispensing
market, a market worth several hundred million US dollars. The company’s head
office is located in Shenzhen, China and has currently approximately 240
employees. Axxon has obtained this position through a strategy to develop
mainstream products, combined with fast response time to customer and market
requirements. This has enabled Axxon to operate with high growth and good
margins. In 2015 net sales increased over 100 percent to approximately SEK 150
million with an EBIT margin exceeding 20 percent.
Mycronic’s strategy for growth includes organic growth as well as acquisitions
to reach sustainable net sales above SEK 2 billion. This deal is part of the
growth strategy.
A key strategy for Mycronic’s business area SMT is to leverage the company’s
leading position in solder paste jetting technology and to further expand into
the general dispensing market. Axxon’s market and technology position, combined
with Mycronic’s position and technology from forty years of inno-vation and
global market presence, is highly complementary and synergetic. The combined
businesses will create one of the leading dispensing equipment companies
globally.
“With the acquisition of Axxon we are taking the next step in our strategy for
our SMT business. Overnight we are creating a leading dispensing business
globally. Axxon’s technology is complimentary to ours. We see great value in
Axxon’s market position in the important SMT market in China, but we also see
value in the know-how represented by the people in Axxon.”, says Lena Olving,
President and CEO of Mycronic.
"Axxon is very pleased to join Mycronic, we admire Mycronic’s advanced
technology. Axxon has enjoyed rapid growth in recent years, and has become a
leader in the dispensing equipment industry in China with a high-value customer
base in the smart phone and other mobile devices industry. It has a market
driven, talented management team and solid technical strength. I believe that
under the leadership of Mycronic, Axxon will soon become a global leading brand
of dispensing equipment.", says Chen Long, Chairman of Axxon.
Mr Chen is the successful entrepreneur who founded Shenzhen Axxon Automation
Co.,Ltd in 2008. Previous to that, Mr Chen has many years’ experience within
several industries and founded his first company in 1996. Mr Chen remains as
shareholder in Axxon.
The acquisition is expected to be finalized by the end of September 2016
following regulatory approvals.
INVITATION TO CONFERENCE CALL
With reference to today’s press release, Mycronic holds a conference call today
1 August, 2016 at CET 11 am. Lena Olving, CEO and Per Ekstedt, CFO is then
available for questions.
To join the conference call, dial:
SE +46 (0)8 503 365 94
Std int +44 (0) 2031 808080
Conference code: 3070469006
Contacts at Mycronic:
Lena Olving
President and CEO
Per Ekstedt
CFO
For coordination of press and analyst contacts regarding this information:
Anna Ulinder
Investor relations officer
Tel: +46 8 638 52 00
anna.ulinder@mycronic.com
About Mycronic AB
Mycronic AB is a Swedish high-tech company engaged in the development,
manufacture and marketing of production equipment for the electronics industry.
Mycronic headquarters are located in Täby, north of Stockholm and the Group has
subsidiaries in China, France, Germany, Japan, Singapore, South Korea, the
Netherlands, United Kingdom and the United States. For more information see our
web site at: www.mycronic.com
Mycronic AB (publ) is listed on NASDAQ Stockholm, Mid Cap: MYCR.
The information is of the type that Mycronic is required to disclose in
accordance with the EU Market Abuse Regulation and the Swedish Securities Act.
The information was submitted for publication, through the contact person stated
above, on 1 August, 2016, at 8.30 am.
