Press Release Contact: Lothar Geilen
Phone: (954) 667-7740
Fax: (954) 341-2056
FOR IMMEDIATE RELEASE
8:00 A.M. EDT, January 26, 2012
Opus Completes Acquisition of ESP Inc. in the U.S.
- Strategic acquisition strengthens Opus' subsidiary Systech International in U.S. vehicle inspection and maintenance (I/M) market.
- ESP's leading position in the decentralized market of emission inspection equipment sales and service is complementary to Systech's position as the leader in decentralized I/M program management contracts.
- ESP's vehicle emission testing products align with Systech's innovative equipment and database technology used in program management contracts.
- ESP's expected turnover in 2012 is approx. USD 25 million, contributing to a growth of approx. 65 % to the existing Opus Group.
- Purchase price paid was USD 9.7 million, which includes a provisional net asset value of USD 6.8 million.
- The acquisition being financed through existing equity and bank loans, will immediately contribute to the net profit per share beginning 2012.
Opus Prodox AB (publ) (Opus Group) announced today that its subsidiary Opus US, Inc. has completed the acquisition of 100% of the shares of Environmental Systems Products, Inc. ("ESP") from Envirotest Systems Holdings Corp., which will continue to operate its centralized and remote sensing programs under the Envirotest name. The acquisition includes all of ESP's operations in the U.S., Mexico and Canada. In 2011, ESP is expected to generate approx. USD 27 million in revenues and exceed USD 3 million in EBITDA. The company has approximately 160 employees.
The total purchase price paid was USD 9,7 million, which includes a provisional net asset value of USD 6,8 million. Opus expects that the acquisition will immediately contribute positively to the company's bottom line.
Lothar Geilen, CEO of Systech and Opus US, Inc., is the CEO of ESP. "In tandem with Systech's industry-leading technologies, ESP will provide our company with first class equipment manufacturing capabilities, teamed with a top notch sales and service organization that is among the best in the vehicle inspection industry" stated Lothar Geilen. He added, "We welcome ESP's employees in joining our organization. We will continue focusing on excellent relationships with customers of both Systech and ESP."
The acquisition combines the strengths offered by both Systech and ESP, adding valuable human resources and infrastructure, and providing a clear path for new business and future growth.
"This acquisition further strengthens our focus on the U.S. vehicle inspection market in our global strategy. We are excited to have ESP join us in building one of the leading vehicle inspection companies in the world." Magnus Greko, CEO of the Opus Group stated. "Together we commit to providing continued outstanding service to Systech's and ESP's customers."
ESP's expected turnover for 2012 is USD 25 million, which includes approximately USD 7 million in business activities anticipated to expire over the next few years.
The financing of this acquisition is made through existing equity and bank loans. The financing bank is Swedbank AB (publ).
Systech International, established in 1999, is part of the Opus Group and provides turnkey vehicle inspection program management services, including vehicle information databases, and advanced emission and safety test systems to various levels of government agencies (federal, state and regional) and to individual inspection stations. The Opus Group is in the business of developing, producing and selling products and services within Automotive Test Equipment, Vehicle Inspection Systems and Fleet Management for the global market. The Group's products include emission analyzers, diagnostic equipment and automatic test lines. Services include management of mandatory vehicle inspection programs. The Group sells its products and services in more than 50 countries all over the world and currently employs around 170 persons. The turnover for 2010 was approx. SEK 230 million. Opus' share is listed on First North Premier (NASDAQ OMX) under the ticker OPUS.