Fluidra Group Australia, a wholly-owned subsidiary indirectly owned by the Spanish pool and wellness equipment company, has signed a purchase agreement to acquire 80% of the Australian firm Fabtronics.
Fabtronics is a Melbourne-based company and is considered one of the leaders in the design of electronic pool equipment components in the Australian market. It puts special emphasis on research and development in the sector. Whatsmore, the company has collaborated in the past with Fluidra, providing research and development services, as well as manufacturing, related to certain products in its portfolio.
In the fiscal year ended June 30, 2019, Fabronic’s sales totalled approximately 18 million Australian dollars, with operating cash flow (EBITDA) over the same period of around 6 million Australian dollars. The agreement with Fluidra values 100% of Fabtronics at 18.75 million Australian dollars, excluding future earn-outs payments.
The price for the purchase of 80% of Fabtronic will be paid out as follows: as of today’s date, an initial payment of 15 million Australian dollars has been made; at the same time, additional earn-outs payments linked to Fabtronics results have been agreed for the next three years. The sales contract which has been signed also includes cross sell and purchase options which would allow Fluidra to increase its stake in Fabtronics’ share capital to 100%.