Angle Advisors announced that Etratech Enterprises Inc. has been acquired by Gentherm Inc., a global developer and marketer of innovative thermal management technologies for a broad range of heating and cooling and temperature control applications.
Based in Burlington, Ontario, Etratech specializes in the design, development and manufacturing of advanced electronic controls and control systems for the automotive, RV and marine, security, medical and other industries. The company provides a complete spectrum of vertically integrated electronics solutions, including hardware and software design, prototyping and testing, manufacturing, assembly and final test, and packaging and delivery. Etratech’s capabilities help OEM customers rapidly innovate and bring new technologies and products to market. The company employs more than 400 people worldwide and has manufacturing facilities in Canada and China.
Etratech estimates revenues of approximately $77 million CAN (approximately $61 million USD) during the 12-month period prior to the acquisition and the purchase price of $64 million USD represents approximately 8.5x EBITDA based on trailing 12-months EBITDA at the time of closing.
“We believe that growing our existing electronics capabilities is critical to our success in the broad spectrum of markets in which we participate,” said Gentherm President and CEO Daniel Coker. “The acquisition of Etratech will add new, innovative electronics products and capabilities in our core automotive and medical markets. This will diversify our product portfolio and manufacturing capabilities in new and important areas. We are very excited to add Etratech to an already outstanding electronics business and team.”
“I believe that with Gentherm, we’ve found a perfect fit for our global electronics engineering and manufacturing business,” said Michael Desnoyers, president and CEO of Etratech.
Larry Klar, a partner at the The Shotgun Fund, which held a minority investment in Etratech, also said, “The Shotgun Fund is proud to have worked with Michael and his team, and we are confident in Etratech’s future success as part of Gentherm.”
Desnoyers added, “The shareholders would like to thank the team at Angle Advisors. They did an outstanding job of differentiating our business and completing a global marketing process to find us the very best possible partner. Their industry knowledge and relationships, along with their transaction expertise proved critical to making this a highly successful transaction.”
Angle Advisors acted as the exclusive investment banking adviser to Etratech in completing this transaction.