Beijer Electronics has signed a letter of intent with UTU Powel Oy to acquire parts of their business within automation in Finland and the Baltic States, with a total sales of some SEK 40 m. The agreement is a part of the recently announced deal with Mitsubishi Electric, where Beijer Electronics is granted the distribution rights for Mitsubishi Electric's agencies in Finland, the Baltic States and Denmark.
The agreement with UTU Powel means that we quickly and smoothly, with existing staff in the acquired units in Finland and the Baltic States, can take over and develop the business around Mitsubishi Electric's agencies in the region, says Göran Sigfridsson, Beijer Electronics' CEO and President.
The deal comprises sales of mainly frequency inverters from Mitsubishi Electric in Finland and Mitsubishi Electric's entire product range in the Baltic States like control systems, frequency inverters, servo systems and robots.
The acquisition also creates a good platform for future expansion, by benefiting from Beijer Electronics' shared Nordic organization for marketing, purchase and logistics. The goal is to further advance its market positions for both Mitsubishi Electrics products and Beijer Electronics' own developed HMI products in the region.
The agreement in principle with UTU Powel Oy means that Beijer Electronics' business area Automation acquires the business of the parts concerned in Finland and Estonia, and subsidiaries in Latvia and Lithuania. The acquired business has totally some 20 staff.
The deal is scheduled for completion end of September 2006 and will thereby be consolidated into Beijer Electronics' accounts from the fourth-quarter 2006.