MANHASSET, N.Y. Technitrol Inc. has agreed to acquire ERA Group, a privately held producer of electronic coils and transformers primarily for the European automotive market, for $57 million (Euro 49 million).
In operation since 1969, ERA (Herrenberg, Germany) has plants in Germany, Tunisia and China. For the 12 months ending Dec. 31, 2006, ERA's sales are expected to be about $90 million. Before synergies that will arise from its integration into Technitrol’s Pulse business (San Diego). ERA is expected to contribute 8 to 10 cents per diluted share to Technitrol's annual earnings.
Technitrol’s Pulse business expects that the integration of ERA operations will be largely completed by the end of 2007, resulting in annual savings of over $8 million by 2008.
ERA will be the cornerstone of the newly formed automotive products division within the Technitrol’s power products group. ERA’s extensive sales and engineering presence will give Pulse’s other divisions a strong foothold in Germany, Europe’s largest market, where they currently have only a small presence.
In addition, Pulse’s worldwide manufacturing, marketing and sales infrastructure will help expand ERA penetrate fast-growing markets of East Asia.