San Diego, California – January 21, 2018 – Pulse Electronics Corporation announced today the acquisition of Austrian-based Egston Holdings, a leading European Magnetics and Cable Assembly provider to the electric vehicles (EV), automotive, industrial, and power magnetics markets.
Egston, with 2017 revenues of approximately USD 87 million, six facilities in Austria, Czech, China and India, and 1,400 employees globally, complements several growing segments of Pulse, including Electrification of Mobility, Autonomous Driving, Industry 4.0, IoT and Smart Grid applications. Egston’s strong global presence and leadership in inductive components and cable systems will enable Pulse to provide key customer solutions in the communications, power magnetics and wireless antenna markets, as well as in the smart grid, industry and specialty vehicle markets.
“The acquisition of Egston, a leader in inductive components and cable systems for the electronics, power distribution, automotive and construction vehicle markets, expands Pulse’s high technology product offering in the growth markets we already serve,” said Mark Twaalfhoven, CEO of Pulse Electronics. “We welcome Egston’s talented organization to Pulse and look forward to working together with them to expand Pulse’s impressive growth and operating performance.”
Egston will operate as an independent business unit of Pulse, known as Egston a Pulse Electronics Company. Egston CEO Frank Wolfinger will continue to lead the unit as General Manager. Pulse will maintain the Egston brand and continue manufacturing its entire product line in order to continue to serve its existing customers.
“We are very excited to join the Pulse Electronics family and look forward to growing our global footprint, which will allow us to better serve our loyal customers while leveraging new market channels and complementary products offerings,” said Mr. Wolfinger. “We are confident that this transaction will act as a springboard to continue the strong growth of Egston a Pulse Electronics Company.”
“I am happy to see Egston becoming a part of Pulse Electronics,” said Walter Wunderer, owner of Egston Group. “Pulse has the financial means to further support the growth of Egston and its integration into Pulse will help to further enhance the development of Egston a Pulse Electronics Company.”
Pulse Electronics 2017 Year-End Results
In addition, Pulse also today announced its unaudited fiscal 2017 results. Key year-end highlights include:
- Revenues increased by 10.1% to USD 315.0 million for the period ended December 29, 2017, vs. USD 286.0 million for the period ended December 30, 2016.
- Net income increased to USD 34.6 million for the period ended December 29, 2017, vs. a loss of USD 13.9 million for the period ended December 30, 2016.
- Adjusted EBITDA increased to USD 45.1 million or 14.3% of revenue for the period ended December 29, 2017, vs. USD 34.2 million or 12.0% of revenue for the period ended December 30, 2016.
Mr. Twaalfhoven commented, “2017 was a growth year for Pulse, demonstrated by our double digit growth from 2016, our positive net income and cash flow, and our substantial growth in organic revenue and adjusted EBITDA. Our focus on EV, Autonomous Vehicles, and Smart Grids has increased shipments of our products and resulted in several key customer wins, including a new contract to provide products to a leading EV company in the U.S. We’re confident that our focused investments in R&D and the successful design-in of several new projects will result in sustained growth over the next several years. We look forward to accelerating this momentum in 2018 through the introduction of numerous new products, and continuing on our path of leadership in the markets we serve.”
About Pulse Electronics
Pulse Electronics is a portfolio company of certain affiliates of investment funds managed by Oaktree Capital Management L.P., a leader among global investment managers specializing in alternative investments, with $100 billion in assets under management as of September 30, 2017. Pulse Electronics is a leading provider of electronic components that help customers build the next great product by providing the needed technical solutions. Pulse Electronics has a long operating history of innovation in antennas, magnetics and connectors, as well as the ability to ramp quickly into high-quality, high-volume production. The Company serves the wireless and wireline communications, power management, military/aerospace, and automotive industries. Pulse Electronics is a participating member of the IEEE, SFF, OIF, HDBaseT Alliance, CommNexus, NFC Forum, MoCA, and IWPC. Visit the Pulse Electronics website at www.pulseelectronics.com.
Alyssa Linn / Monique Sidhom
Sard Verbinnen & Co