AUGUSTA acquires Canadian company LMI Technologies

Date: 
Thu, 04/21/2011

AUGUSTA acquires Canadian company LMI Technologies, a leading supplier in the rapidly growing 3D Vision market

  • Acquisition of 100 percent of the shares
  • The acquisition makes AUGUSTA one of the top suppliers in the global Vision market
  • Entry into the attractive, rapidly growing 3D market
  • Expansion of technology and application-specific know-how in 3D measurement
  • Synergies with existing Vision activities

Munich, April 21, 2011. Technology company AUGUSTA Technologie AG (ISIN DE000A0D6612), specialized in sensors and vision technology, has reached agreement on acquiring 100 percent of the shares of LMI Technologies Inc. based in Vancouver, Canada. The takeover deal is expected to be signed in the coming weeks. LMI Technologies is an innovative provider of 3D sensor solutions. The company is regarded as one of the world's leading providers in the field of 3D laser triangulation measurement. At the same time LMI focuses on a variety of vertical industrial markets such as, for example, wood industry, glass inspection, tire manufacture and the automotive industry as well as economic sectors outside of conventional industry segments such as road construction and agriculture. In all of these industries, LMI enjoys long-term relationships with major OEM customers and has established an excellent market position.

In the past 12 months, LMI generated revenues of USD 20 million with an operating margin (EBITDA) of approx. 20 percent. The company's worldwide workforce now numbers around 75 employees. The purchase price amounted to USD 30 million at conclusion of the agreement. In addition to this, there are earn-out components that are coupled to increased profitability in 2011 and 2012. Based on the current situation, earn-out payments of around USD 10 million are expected. The purchase price will largely be financed through debt capital.

Perfect strategic fit and entry into the rapidly growing 3D market

Following the recent acquisitions of the companies P+S Technik and VDS Vosskühler, the acquisition of LMI Technologies represents a further important step for AUGUSTA in its buy-and-build strategy in the Vision Technology segment to become a top supplier in the global Vision market. "LMI is a perfect fit to our Vision segment and will give us access to the rapidly growing 3D market. The acquisition will pave the way for further above-average growth. This will significantly improve our sales volume in the Vision segment and the margin situation for the entire AUGUSTA Group," said Amnon Harman, CEO of AUGUSTA Technologie AG commenting on the acquisition.

3D systems represent a comprehensive complementary extension of the existing product portfolio. Industry experts forecast sustainable growth of over 20 percent per year world-wide for this market.

Expansion of technological competence and realization of synergies

With its subsidiary Allied Vision Technologies GmbH, AUGUSTA is already the world's leading supplier of digital cameras for industrial image processing. "In addition to strong relationships with key OEM customers, we are gaining valuable technical expertise and are expanding our applications know-how in the area of Vision Technologies," added Harman.

The CEO of LMI Technologies Inc., Terry Arden, will retain his position following the acquisition of the company. "We are delighted to become part of the AUGUSTA Group, given the attractive synergies arising for both parties. In the area of sales, we can see cross-selling potential with both OEM customers as well as for indirect sales via distributors. In technological areas such as, for example, image quality, image resolution or embedded processing, we will be able to learn from one another and implement joint projects. Both companies will benefit hugely," said Terry Arden.

Technological leader's valuation is market-oriented

"With sales of more than 60,000 3D camera systems, LMI Technologies has impressively proven that it is one of the world's leading suppliers. The products are optimized for application-specific requirements and hence in considerable demand among the global customer base. This will also enable us to expand into new areas of application," said Arno Pätzold, CDO of AUGUSTA Technologies AG. "We expect to be able to increase the current profitability of LMI by more than 15 percent per year through above-average growth in comparison to other Vision segments and synergies. Considering this financial performance and the large volume of the earn-out component, we are convinced that the purchase price is very reasonable," added Pätzold.

AUGUSTA Technologie AG
Stefanie Zimmermann
Investor Relations & Corporate Communications
Willy-Brandt-Platz 3, D-81829 Munich
Tel.: +49 - (0)89 - 43 57 155 - 19
Fax: +49 - (0)89 - 43 57 155 - 59
E-mail: investor-relations@augusta-ag.com

The company

AUGUSTA Technologie AG is an integrated technology group with a focus on the niche markets of digital image processing (Vision) and sensor technology (Sensors). The Vision business focuses on the supply of digital cameras and optical sensor systems for automation and enhancing quality, safety and efficiency. This business segment addresses a wide range of applications in different industries including manufacturing, health care and transportation technology. Digital film cameras for the media and entertainment market are a new niche segment being addressed.

In the Sensors division, the company develops, produces and sells sensor systems for customer-specific applications. The product portfolio ranges from the sale of individual pressure sensors to the development of complex sensor and measuring systems. The main areas of application are medical technology, machinery and plant engineering, the automotive industry, and the aviation and aerospace industries.

AUGUSTA generated revenues totaling EUR 129.3 million, and EUR 20.1 million in earnings before interest, tax, depreciation and amortization (EBITDA) in the 2010 financial year.