Novedo’s portfolio company ProvideU acquires Eletronik Mekanik in Västerås
Elektronik Mekanik in Västerås is a fast-growing industrial company focusing on the production and assembly of circuit boards. The company has a long history and strong client relations. Since Thomas Zeijlon took over as CEO in 2017 the company has doubled its turnover to 60 million SEK and profitability has been satisfactory.
”I have worked for EM 30 years and have been CEO for five years. We have strong and close relations to our clients and our organization is a dedicated team where everyone strives for the same goal. I am looking forward to becoming a part of a larger entity with ProvideU, an exciting challenge. It is stimulating to become a co-owner of Novedo on its way to an IPO. I welcome to have more speaking partners to share ideas with. With larger muscles we will be able to serve larger clients and to add value to our existing clients”, says Thomas Zeijlon, CEO of EM.
EM was introduced to Novedo in conjunction with the acquisition of ProvideU AB that took place earlier this year. The two Västerås based companies are active in the same sectors without being competitors. After the transaction EM will be a subsidiary of ProvideU with large strategic advantages in the cooperation.
”EM is a very attractive company, and we are glad that it will become a subsidiary of ProvideU, a company that was founded in 2008 as a component supplier. With focus on custom made components that have evolved into a complete solutions provider, a ”one-stop- shop”, where we offer components, electronics assembly, box-build, and complete systems. The lion share of the production takes place in the subsidiary ProvideU Assembly based in Tallinn. With this acquisition we will get a production unit in Sweden which will add to our knowledge base and increase our attractiveness for our clients with more functions which create synergies through increased additional sales”, says Fredrik Forngren, CEO at ProvideU.
”Provide U’s acquisition of EM is the first add-on acquisition for Novedo. This is delightful since it shows that our portfolio companies can attract others and can add value to companies in the group and to Novedo overall,” says Per-Johan Dahlgren, CEO of Novedo.
The acquisition is Novedo’s nineteenth since inception and the eighth in 2022 and another step towards the IPO, which is planned for the first half of 2023. Following the acquisition, Novedo has net sales of approximately SEK 2.0 billion with an EBITDA of SEK 292 million pro forma.