Augusta Technologie acquires LMI Technologies, enters 3-D imaging market
Continuing its recent string of acquisitions,Augusta Technologie, parent company of Allied Vision Technologies (Stadtroda, Germany), has acquired LMI Technologies (Vancouver, BC, Canada) for $30 million plus incentives expected to total $10 million.
In its announcement dated 21 April, Augusta Technologie (Munich, Germany) said it has reached agreement on acquiring 100% of the shares of LMI Technologies and that the takeover deal is expected to be signed in the coming weeks. LMI Technologies is an provider of 3-D sensor solutions. LMI focuses on a variety of vertical industrial markets including the wood industry, glass inspection, tire manufacture, and the automotive industry, as well as economic sectors outside of conventional industry segments such as road construction and agriculture.
In the past 12 months, LMI generated revenues of $20 million, with an operating margin (EBITDA) of approximately 20%. The company’s worldwide workforce now numbers about 75 employees. The purchase price of $30 million has additional earn-out components that are coupled to increased profitability in 2011 and 2012. Based on the current situation, earn-out payments of about $10 million are expected. The purchase price will largely be financed through debt capital.
Strategic fit
Following the recent acquisitions of P+S Technik in September 2010 and VDS Vosskühler in January 2011, the acquisition of LMI Technologies represents a further important step for Augusta in its buy-and-build strategy in the vision technology segment aimed at becoming a top supplier in the global vision market. “LMI is a perfect fit to our vision segment and will give us access to the rapidly growing 3-D market," said Amnon Harman, CEO of Augusta. "The acquisition will pave the way for further above-average growth. This will significantly improve our sales volume in the vision segment and the margin situation for the entire Augusta Group.”
The CEO of LMI Technologies, Terry Arden, will retain his position following the acquisition of the company. “We are delighted to become part of the Augusta Group, given the attractive synergies arising for both parties. In the area of sales, we can see cross-selling potential with both OEM customers as well as for indirect sales via distributors. In technological areas such as image quality, image resolution, or embedded processing, we will be able to learn from one another and implement joint projects."
Augusta noted that LMI has sold more than 60,000 3-D camera systems. The holding company expects to be able to increase the current profitability of LMI by more than 15% per year through above-average growth in comparison to other Vision segments and synergies. Augusta generated revenues totaling EUR 129.3 million, and EUR 20.1 million EBITDA in FY2010.
SOURCE:Augusta Technologie
--Posted byVision Systems Design