Datwyler has signed a contract to acquire the US company QSR from Q Holding and its private equity owner, 3i. The closing of the transaction is expected to take place in the course of the second quarter of 2022, subject to the fulfilment of customary conditions and approvals.
With this strategically important acquisition, we will become the leading global supplier of system-critical sealing solutions for electrical connectors for a diverse range of industries, which will open up new exciting niche markets for us. QSR is an ideal fit with Datwyler in terms of strategy, core competencies and culture and will further accelerate our profitable growth. With our significantly strengthened market positions in North America and Asia, we will be able to reduce our dependency on the European market. The new independent Connectors business unit will also enable us to cross sell with our Mobility and General Industry business units.Dirk Lambrecht
We have proven for many years that we can benefit over-proportionally from the growth trends in our markets. With the investments and expansions we have made, we are more than ever in a position to leverage today's trends such as electrification, connectivity, Industry 4.0 and the Internet of Things for profitable growth. The QSR team looks very much forward of becoming part of Datwyler. Its leading positions in adjacent markets and its strong sales network in Europe will further accelerate our growth.Mauricio Arellano
Complementary addition in attractive markets underpinned by relevant mega trends
QSR will be a complementary addition to Datwyler with a strong strategic fit and growth synergies. Based on an identical business model and similar core competencies, QSR develops and produces system-critical seals and components for electrical connectors for safeguarding connectivity in harsh environments. Various mega trends such as electrification, the automation of production facilities and the connectivity of devices offer attractive growth opportunities for these seals and components with an expected average annual growth rate of 9% for the coming years. With QSR, Datwyler will gain access to new product segments and markets while accelerating its development of a more geographically balanced portfolio.
World's leading supplier of seals and components for electrical connectors
QSR maintains long-standing and close customer relationships with the world’s largest connector technology companies and is frequently the leading supplier. With five plants and supporting operations in the USA, Mexico and China, as well as 1’250 employees, QSR generated sales of USD 164 million (some CHF 150 million) and adjusted EBITDA of USD 44 million (some CHF 40 million) in 2021. The company was founded in 1966 and has its own in-house mold production and mixing facilities. Thanks to its leading and unique competencies in materials and technology and its strong market positions, QSR is on a profitable growth path with an above-market average annual sales growth of 9% since 2012. The current management will stay on board, thus ensuring continuity. QSR will be integrated as an independent Connectors business unit into Datwyler’s Industrial Solutions business area, and will be immediately accretive to the business. The transaction values QSR at USD 625 million. Datwyler will use existing liquidity reserves and third-party loans to finance the acquisition.
Publication date of half-year reporting postponed
The closing of the contract is expected to take place in the course of the second quarter of 2022, subject to the fulfilment of the usual conditions. For the first half of the year, Datwyler will comply with the reporting requirements under Swiss GAAP FER in the accustomed quality, including for the newly acquired companies. For this reason, the publication date of the half-year report will be postponed by around one month to 24 August 2022.
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