Schaffner strengthens its position as global partner in the international market for power electronics systems with the acquisition of dry-type transformer operations of American manufacturer MTC Transformers
LUTERBACH, Switzerland, Sept. 2, 2011 /PRNewswire/ -- The Schaffner Group has signed an asset purchase agreement to acquire the dry-type transformers operations of American transformer manufacturer MTC Transformers, Inc. as of September 1, 2011. Under the transaction, Schaffner is acquiring MTC Transformer's Wytheville, Virginia (USA) production site, and Roanoke, Virginia (USA) based sales office, as well as the well-established MTC Transfomers brand. The acquisition will strengthen the Schaffner Group's market position in North America and add a production site in the USA to its international manufacturing organization, which already consists of production centers in China, Germany, Thailand and Hungary.
Founded in 1985 MTC Transformers, Inc. specializes in the development, manufacturing and maintenance of transformers and other power magnetics. Its Wytheville operations are focusing on dry-type transformers for medium-voltage applications in the rail technology, renewable energies and energy-efficient drive systems sectors. With around 70 employees the division estimates sales to be USD 16 million and an EBIT margin in the upper single digit range in 2011 fiscal year. The acquisition price is around USD 14 million.
"With the acquisition we are expanding our technological expertise in the area of Power Magnetics and our market presence in North America. This will strengthen Schaffner's position as a global partner in the international market for power electronics systems. With our broad range of products as well as development and production capacities around the globe, we are on course to meet our strategic goal of achieving a leading market position in the area of Power Magnetics by 2015," says Alexander Hagemann, Chief Executive Officer of the Schaffner Group. Tom Hough, Chief Executive Officer of MTC Transformers, states: "Our expertise will help Schaffner grow in the American market. Integration into the global Schaffner Group also opens up attractive opportunities for our customers and employees."
To finance the acquisition, Schaffner has extended its existing line of credit with the Group's four principal banks.
Divisional organization replaces functional structure
As part of the implementation of its growth strategy, the Schaffner Group will be divided into three divisions, EMC, Power Magnetics and Automotive, at the start of the new fiscal year on October 1, 2011. The Group Executive Board will also be adapted at the same time. As of October 1, 2011, Chief Executive Officer Alexander Hagemann will head up the new Group Executive Board, which will consist of Chief Financial Officer Kurt Ledermann, Chief Operating Officer Ah Bee Goh as well as the three Division Heads. Guido Schlegelmilch, currently in charge of Schaffner Group operations in Germany, has been appointed as Head of the EMC division and as a new member of Group Management. Management of the Power Magnetics division will be taken over by Eduard Hadorn, previously Vice President Business Development Asia, and Jean-Michel Calleri, previously Vice President Sales Europe, will head up the Automotive division. Previous members of Group Management, Fabian Beck and Martin Koeppel, will continue to bear functional responsibility for research and development and for quality assurance and supply chain management respectively.