ANAHEIM, CALIF. (Dec. 22, 11 p.m. ET) — Balda AG of Bad Oeynhausen, Germany, is positioned to acquire C. Brewer Co. effective Dec. 31 as part of Balda's buy-and-build strategy for its medical segment.
Balda said it will acquire the custom injection molding and mold making operations of family-owned C. Brewer in Anaheim, Irvine and Ontario, Calif., for about 33 million euros ($43.7 million) including a performance-related earn-out clause of 3.8 million euros ($5 million).
C. Brewer has about 500 employees. Principals are brothers Chuck Brewer III and Michael Brewer.
The company has family roots going back to 1966, occupies about 135,000 square feet of space and operates more than 75 injection molding presses.
In late 2011, C. Brewer bought the assets of the former Kipp Group plant in Ontario from CareFusion Corp. and has dedicated the site to the molding and assembly of medical devices.
Balda said the purchase price is based on a multiple of less than seven times the expected C. Brewer 2012 adjusted earnings before interest, taxes, depreciation, and amortization.
Balda said C. Brewer expects 2012 sales of about $48 million. C. Brewer sells primarily into the medical, biotechnology, recreational sports and automotive markets.
About one-third of C. Brewer's revenues come from medical clients and 50 percent from optics, according to Balda.
Dominik Müser, Balda chief executive officer, noted that the U.S. has the world's largest healthcare market and is important to fulfill Balda's desire to have a presence with its own production locations.
Balda makes medical technology, pharmaceutical and diagnostics products in Germany and electronic products in Ipoh, Malaysia. Balda has a sales subsidiary in the U.S.
The Balda group generated sales of 24.7 million euros ($30.8 million) for the six months ended June 30 and 66.3 million euros ($85.7 million) for calendar 2011.
Balda was founded in 1908 in Dresden, Germany, as a manufacturer of cameras.
M&A International Inc. with two partner firms advised Balda in this transaction.