On 31 March 2014, Schaffner Group acquired from the parent company Transformer Holding LLC the subsidiaries Transformer Engineering LLC (Trenco), Magnetics Technologies LLC and Transformer Real Estate LLC, headquartered in Cleveland, Ohio.
Trenco, founded in 1937, develops and manufactures customized power magnetics solutions, primarily for customers in Schaffner Group's strategic market sectors: energy-efficient drive systems, rail technology and renewable energies. In 2013 the US company, with 70 employees, generated around CHF 12 million in sales and an EBITDA margin in the mid to upper single digit percentage range. The purchase price of around CHF 9 million will be financed by extending the existing credit lines.
Factoring in the consolidation of Trenco from the second half of fiscal 2013/14, Schaffner Group expects net sales for the current fiscal year to surpass the prior-year figure by 10 to 15 percent. The acquisition costs will have a one-time negative impact of around 0.3 percent on the EBIT margin in 2013/14 and around CHF 0.50 on earnings per share (EPS) in 2013/14. A positive contribution of around CHF 1.00 per share is expected as early as fiscal 2014/15. Even after the acquisition, the equity ratio will remain in excess of 40 percent.