Hexatronic acquires KNET for $63m
Hexatronic has acquired leading microduct business KNET for around US$63 million.
The purchase price is a fixed enterprise value of US$48 million plus a potential earn-out based on the EBITDA for the 36-month period post-closing.
The company is expected to generate an EBITDA of around US$10 million and the transaction represents approximately 4.6x the value of this number.
The potential earn-out is estimated to be around US$15 million.
“We are very pleased to have reached an agreement to acquire KNET. We have been working with the highly skilled team of KNET for more than 10 years and are impressed with the product quality and innovation capabilities,” said Henrik Larsson Lyon, CEO of Hexatronc Group.
“Throughout the years KNET has been an important partner to Hexatronic. Both as a volume supplier managing peaks in demand, but also for products with high technical requirements.
“The strong support of KNET has been crucial for our strong growth and recent success in North America. Hexatronic is today the largest customer of KNET.
KNET was founded in 2002 and has delivered its products to more than 70 countries in five continents, with its main markets being North America, Europe and Asia.
The acquisition is expected to close on December 1, 2022.