EMS Firm Inission Continues Growth Strategy, Acquires Onrox Group

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Inission's strategy is to grow through acquisitions, and thus become one of the larger EMS players in the Nordic region. In just four years, four companies have been bought and now Inission has made its largest deal ever with the acquisition of Onrox Group. With Onrox Group Inissions annual turnover goes from 340 MSEK to well over 600 MSEK. Onrox Group consists of Onrox Group Malmö AB and Onrox Group Borås AB and, as well as Inission, they are contract manufacturer of electronics. Onrox Group Malmö AB also owns the Danish sales company Onrox ApS.

From left to right: Fredrik Berghel, Olle Hulteberg and Peter Svensson.

Thanks to the acquisition, Inission can offer the market both larger muscles, broader skills and more flexibility. Onrox Group will have access to production capacity in the Baltic region through Inissions factory in Tallinn. Inission is complemented by a substantial increase in capacity and expertise. Moreover, Onrox Malmös Danish sales company Onrox ApS will have an already strong offering enhanced. The Danish business grows and Inission has high hopes for further growth.

Börje Nilsson, CEO of the Onrox Group, said, "Of all the interested parties, I think Inission is clearly the most suitable; we have a common view on many things. Cooperation before the acquisition has worked perfectly and we also have fun working together. I am therefore convinced that our existing customers will see the new owner exclusively positive."

Fredrik Berghel, CEO of Inission, added, "We have a very positive integration project currently underway in Stockholm where Inission Triab and Inission SKEAB are being merged. The new Stockholm unit will not be any ordinary factory but a next-generation designs factory. Integration in Stockholm has been received positively by the market, and now we of course hope for the same positive trend in Gothenburg and Malmö. We will immediately start a pilot study for a possible co-location, but we need to plan it thoroughly out of respect for our customers. Customers should as far as possible be involved in the process making sure that significant improvements are implemented. The industry is in consolidation and Inission wants to be an active player in that process. The challenge is to grow with good profitability, which we have already proved that we can. Now we apply our model to Onrox to ensure a good quality and good profitability."

The purchase price for the acquisition of Onrox Group amounts to SEK 40 million, corresponding to equity in Onrox Group. The purchase price was partly funded by loan with a bank and partly by its own means. The entire purchase price has been paid in cash on the date of transaction.

2015 Onrox Group had sales of 286 MSEK with a profit after financial items of -8 MSEK. Inissions balance sheet is affected so that a new aggregate total asset will be 308 MSEK, with an equity ratio of 29%. Onrox Group also owned properties in which operations are conducted in Borås and Malmö. These properties have been sold simultaneously. Both properties were acquired by Acrinova whose core business is property management. Current management in Onrox Malmö and Onrox Borås persist, thus ensuring continuity.

About Onrox

Onrox are engaged in manufacturing of products containing modern electronics. Onrox has 25 years of experience in the industry with broad expertise and equipment for prototype and series production to testing and delivery. The company has 130 employees. More information about Onrox Group is available at onrox.se

About Inission

Inission is a total supplier of customized manufacturing and logistics services in advanced industrial electronics. The Group consists of the parent company Inission AB and the wholly owned subsidiaries Inission TRIAB AB and Inission SKEAB AB in Stockholm, Inission Göteborg AB, Inission Munkfors AB, Inission Pajala AB, Inission Montronic AB in Sösdala and the Estonian company Inission Tallinn OÜ. Inission has a annual turnover of 340 MSEK, has approximately 210 employees and is listed on Nasdaq First North. Certified Advisor is Avanza Bank.