Herkules sells the globally leading transformer supplier Noratel to Acal
(Oslo, 5 June 2014) Herkules Private Equity I has sold Noratel to Acal, a leading European specialist electronics supplier. Noratel is a world leader within dry-insulated transformers and power-supplies. During Herkules’ ownership the company has grown from a leading Nordic position to a global position with strong presence in Europe, Asia and North America. The transaction valued Noratel at an enterprise value of NOK 735 million.
Noratel is a leading global manufacturer and distributor of low/medium voltage transformers with a comprehensive range of dry-insulated transformers, power-supplies and chokes. The company has a unique position in the low/medium voltage transformer market – no other sizable competitor offers Noratel’s product range. With its broad customer portfolio in Europe, Asia and North America, Noratel has become a preferred supplier to leading international OEMs in various markets. The company has a well-established position and supplies transformers to wholesalers, the renewable energy sector, the medical equipment sector, oil & offshore, transportation, etc. Over the years Noratel has had a strong and consistent financial performance, with a steady growth in EBITDA. Selected acquisitions and strong organic development have increased EBITDA from NOK 31 million in in 2004 to NOK 100 million in 2013. Sales has grown from NOK 305 million in 2004 to NOK 794 million in 2013.
Patrik Bø Egeland, Partner at Herkules Capital, states that: “When we invested in Noratel in 2004, we believed in the strong product offering and the international potential of the company. Together with a highly competent management team we have been successful in positioning the company globally from its strong basis and roots at Hokksund, Norway. Noratel has been an early mover in balancing local presence with low-cost manufacturing in Eastern Europe and Asia. This, combined with excellent product quality and design, has ensured Noratel a strong and profitable position in the global transformer market. Acal is a strong industrial owner, with experience from the electronics technology industry, and it shares the same quality and value focus as is deeply rooted in Noratel. We are confident that Acal will be a good fit and owner for Noratel”.
Nick Jefferies, Group Chief Executive Acal Plc commented: “The proposed acquisition of Noratel is a major step forward in building a highly differentiated specialist electronics supplier. The company has a successful track record of providing custom electromagnetic products to industrial customers throughout Europe and increasingly in North America and Asia, and fits well with our existing businesses, in particular the Myrra Group. As part of the enlarged group, Noratel will have access to our 20,000 strong customer base whilst Acal will benefit from Noratel’s well established customisation, design and manufacturing capabilities and international footprint. We look forward to welcoming Noratel’s management and employees into the Acal Group.”