NORTHVILLE — Gentherm Inc. (Nasdaq: THRM), the Northville developer of thermal management technologies for the automotive and other markets, announced it had acquired Etratech Enterprises Inc. of Burlington, Ontario, for $64 million in an all-cash transaction.
Etratech designs, develops and produces electronic controls for the automotive, appliance, recreational vehicle, marine, medical, and other industries.
“We believe that growing our existing electronics capabilities is critical to our success in the broad spectrum of markets in which we participate,” said Gentherm President and CEO Daniel R. Coker. “The acquisition of Etratech will add new, innovative electronics products and capabilities in our core automotive and medical markets. This will diversify our product portfolio and manufacturing capabilities in new and important areas. We are very excited to add Etratech to an already outstanding electronics business and team.”
Added Michael Desnoyers, president and CEO of Etratech: “Etratech is dedicated to innovation, exceeding customers’ expectations and providing total customer satisfaction. I believe that with Gentherm, we’ve found a perfect fit for our global electronics engineering and manufacturing business.”
Etratech’s management team will continue to lead the company, which will integrate into Gentherm’s Electronics Business Unit. Etratech will continue operations at its headquarters in Burlington, Ontario, Canada, with manufacturing in Canada and China.
Etratech had revenue of $77 million Canadian ($61 million U.S.) in the 12 months prior to the acquisition, and forecasts continued 15 percent revenue growth through 2018. Gentherm said the transaction is expected to be accretive to earnings in fiscal 2017 by about 8 cents per share on a fully diluted pro-forma basis. The purchase was funded from Gentherm’s existing available cash.
Gentherm’s products include thermal management technologies for a broad range of heating and cooling and temperature control applications, including climate-controlled automotive seating, heating and cooling cupholder and storage bins, battery thermal management systems, remote power generation systems, heated and cooled furniture, patient temperature management systems, industrial environmental test chambers and related product testing services and other consumer and industrial temperature control applications.
More at www.gentherm.com or www.etratech.com.