Jenoptik acquires Trioptics
Supplier of measuring and manufacturing systems for optical components
Jenoptik takes over the photonics specialist Trioptics at an undisclosed price. The company will be assigned to the Light & Optics division of Jenoptik. The actual acquisition will take place in two steps: First, Jenoptik will take over 75 percent of the shares, the remaining shares after meeting defined success criteria by the end of 2021. The two managing directors Eugen Dumitrescu and Stefan Krey will remain active for Trioptics in their previous functions under the umbrella of Jenoptik. The acquisition still requires the approval of the authorities and is expected to be completed in the 3rd quarter of 2020.
Trioptics was founded in 1991 and is a provider of measurement and manufacturing systems for optical components and sensors. Headquartered in Wedel near Hamburg, Germany, the company employs more than 400 people worldwide, around 100 of whom work in research and development. In 2019, it generated sales of approximately 80 million Euros with an operating margin before depreciation and amortization of around 27 percent. Over the past four years, the company has recorded average annual sales growth (CAGR) of around 17 percent. Trioptics has sites in Europe and Asia. The latter in particular is a key sales market for the company, where it generates over half of its revenues.
Good Market Access to many Smartphone and Camera Manufacturers
Trioptics has good market access to many smartphone and camera manufacturers and their suppliers, among others, with whom the company generates a large part of its sales. Jenoptik expects this to provide further growth opportunities for the existing test equipment business in the Light & Optics division. The company also intends to participate in the growing markets surrounding new virtual and augmented reality applications in the industry and consumer segment.
With its strong presence and established access to key customers of Trioptics in Asia, Jenoptik can expand existing market shares in China, Japan and Korea. The Group is also strengthening its position in California and Florida and expanding its range of services for important American customers in the digital and communications sector. In addition, the acquisition will create significant economies of scale in the core markets, making Jenoptik's business model more robust.
Stefan Traeger, Chairman of the Executive Board of Jenoptik, says: "The acquisition of Trioptics is a trend-setting step in the strategic development of Jenoptik and the intended focus of the Group on optics and photonics. We are accelerating our profitable growth and placing our business on a broader and more international basis. The transaction will enable us to offer our customers an even more comprehensive portfolio for applications in the digital world. This will enable us to tap additional growth potential in the areas of mobile data acquisition and transmission as well as innovative human-machine interfaces in the automotive and industrial markets, among others. This transaction also makes us less dependent on individual cycles and customers.
Already in spring Jenoptik announced the acquisition of the outstanding 33.42 percent of the shares in Jenoptik Japan Co. Ltd. from its joint venture partner Kantum Ushikata. Jenoptik Japan thus became a 100 percent Group subsidiary.
In the 2019 fiscal year sales totaled 855.2 million euros, an increase of 2.5 percent over the previous year. The momentum increased in the course of the year, with the fourth quarter, as expected, being the strongest in terms of sales at 259.5 million euros (plus 7.6 percent compared with the previous year). The greatest growth impetus came from the Light & Optics and Light & Production segments.