ANN ARBOR — Drerw Technologies Inc., an Ann Arbor manufacturer of vehcile communication, analysis and diagnostic equipment for the vehicle inspection and service industries, is being acquired by a subsidiary of Mölndal, Sweden-based Opus Group AB.
The purchase price is $30 million, plus a contingent payment of another $4.4 million depending on Drew’s profitability.
The companies said the deal is expected to close within the next 30 days.
After the acquisition, Drew Tech will become a subsidiary of Opus Inspection. Opus officials added that the company will continue to operate as a stand-alone legal entity with the current management in place.
Drew Tech manfuactures On Board Diagnostic (OBD) equipment for the vehicle inspection industry and auto manufacturers. Its products include tools for vehicle development, end‑of-line testing, vehicle diagnostics and vehicle inspection programs.
Opus said that in 2014, Drew Tech had revenue of about $13 million and earnings before interest, taxes, depreciation and amortization of $5.4 million. About $2.2 million of Drew’s 2014 sales were to Opus. The company has had a compound annual revenue growth rate of 29 percent over the past seven years.
Opus said the deal would be financed through $25 million in cash, $5 million in stock to the sellers of Drew Tech and $4.4 million in earn-out over the next five years.
The transaction is expected to contribute to net profit per share for Opus Group beginning in March 2015.
Lothar Gellen, CEO of the Opus Inspection unit of Opus Group, said Drew Tech “has a leading position in the OBD scan tool and data logger market and a bright future ahead of itself. Drew Tech will continue to operate stand alone and focus on its strong customer relationships. Short and mid-term we see a great strategic fit between both Drew Tech and Opus Inspection as vehicle communication will become a significant portion of vehicle inspection programs. Their technical expertise in OBD technology is the company’s leading strength. I especially want to express a warm welcome to the Drew Tech employees, who have been instrumental in the company’s ongoing success.”
Drew Tech was founded in 1996. All of the company’s product development, design and final production take place in Ann Arbor. The company is at the forefront with its latest OBD technology that is used to inspect vehicles for both emission and safety vehicle inspection. The acquisition means Opus Inspection controls market leading OBD technology it intends to use in several markets. This technology is of great importance for the future global product and service offering of Opus Inspection, including in U.S. vehicle inspection markets.
For more information about Drew Tech visit www.drewtech.com and for Opus Inspection, www.opusinspection.com.