San Diego, Cal­i­for­nia – Jan­u­ary 21, 2018 – Pulse Elec­tron­ics Cor­po­ra­tion announced today the acqui­si­tion of Aus­tri­an-based Egston Hold­ings, a lead­ing Euro­pean Mag­net­ics and Cable Assem­bly provider to the elec­tric vehi­cles (EV), auto­mo­tive, indus­tri­al, and pow­er mag­net­ics mar­kets.

Egston, with 2017 rev­enues of approx­i­mate­ly USD 87 mil­lion, six facil­i­ties in Aus­tria, Czech, Chi­na and India, and 1,400 employ­ees glob­al­ly, com­ple­ments sev­er­al grow­ing seg­ments of Pulse, includ­ing Elec­tri­fi­ca­tion of Mobil­i­ty, Autonomous Dri­ving, Indus­try 4.0, IoT and Smart Grid appli­ca­tions.  Egston’s strong glob­al pres­ence and lead­er­ship in induc­tive com­po­nents and cable sys­tems will enable Pulse to pro­vide key cus­tomer solu­tions in the com­mu­ni­ca­tions, pow­er mag­net­ics and wire­less anten­na mar­kets, as well as in the smart grid, indus­try and spe­cial­ty vehi­cle mar­kets.

The acqui­si­tion of Egston, a leader in induc­tive com­po­nents and cable sys­tems for the elec­tron­ics, pow­er dis­tri­b­u­tion, auto­mo­tive and con­struc­tion vehi­cle mar­kets, expands Pulse’s high tech­nol­o­gy prod­uct offer­ing in the growth mar­kets we already serve,” said Mark Twaalfhoven, CEO of Pulse Elec­tron­ics. “We wel­come Egston’s tal­ent­ed orga­ni­za­tion to Pulse and look for­ward to work­ing togeth­er with them to expand Pulse’s impres­sive growth and oper­at­ing per­for­mance.”

Egston will oper­ate as an inde­pen­dent busi­ness unit of Pulse, known as Egston a Pulse Elec­tron­ics Com­pa­ny.  Egston CEO Frank Wolfin­ger will con­tin­ue to lead the unit as Gen­er­al Man­ag­er.  Pulse will main­tain the Egston brand and con­tin­ue man­u­fac­tur­ing its entire prod­uct line in order to con­tin­ue to serve its exist­ing cus­tomers.

We are very excit­ed to join the Pulse Elec­tron­ics fam­i­ly and look for­ward to grow­ing our glob­al foot­print, which will allow us to bet­ter serve our loy­al cus­tomers while lever­ag­ing new mar­ket chan­nels and com­ple­men­tary prod­ucts offer­ings,” said Mr. Wolfin­ger.  “We are con­fi­dent that this trans­ac­tion will act as a spring­board to con­tin­ue the strong growth of Egston a Pulse Elec­tron­ics Com­pa­ny.”

I am hap­py to see Egston becom­ing a part of Pulse Elec­tron­ics,” said Wal­ter Wun­der­er, own­er of Egston Group.  “Pulse has the finan­cial means to fur­ther sup­port the growth of Egston and its inte­gra­tion into Pulse will help to fur­ther enhance the devel­op­ment of Egston a Pulse Elec­tron­ics Com­pa­ny.”

Pulse Elec­tron­ics 2017 Year-End Results

In addi­tion, Pulse also today announced its unau­dit­ed fis­cal 2017 results.  Key year-end high­lights include:

  • Rev­enues increased by 10.1% to USD 315.0 mil­lion for the peri­od end­ed Decem­ber 29, 2017, vs. USD 286.0 mil­lion for the peri­od end­ed Decem­ber 30, 2016.
  • Net income increased to USD 34.6 mil­lion for the peri­od end­ed Decem­ber 29, 2017, vs. a loss of USD 13.9 mil­lion for the peri­od end­ed Decem­ber 30, 2016.
  • Adjust­ed EBITDA increased to USD 45.1 mil­lion or 14.3% of rev­enue for the peri­od end­ed Decem­ber 29, 2017, vs. USD 34.2 mil­lion or 12.0% of rev­enue for the peri­od end­ed Decem­ber 30, 2016.

 Mr. Twaalfhoven com­ment­ed, “2017 was a growth year for Pulse, demon­strat­ed by our dou­ble dig­it growth from 2016, our pos­i­tive net income and cash flow, and our sub­stan­tial growth in organ­ic rev­enue and adjust­ed EBITDA.  Our focus on EV, Autonomous Vehi­cles, and Smart Grids has increased ship­ments of our prod­ucts and result­ed in sev­er­al key cus­tomer wins, includ­ing a new con­tract to pro­vide prod­ucts to a lead­ing EV com­pa­ny in the U.S.  We’re con­fi­dent that our focused invest­ments in R&D and the suc­cess­ful design-in of sev­er­al new projects will result in sus­tained growth over the next sev­er­al years.  We look for­ward to accel­er­at­ing this momen­tum in 2018 through the intro­duc­tion of numer­ous new prod­ucts, and con­tin­u­ing on our path of lead­er­ship in the mar­kets we serve.”

About Pulse Elec­tron­ics

Pulse Elec­tron­ics is a port­fo­lio com­pa­ny of cer­tain affil­i­ates of invest­ment funds man­aged by Oak­tree Cap­i­tal Man­age­ment L.P., a leader among glob­al invest­ment man­agers spe­cial­iz­ing in alter­na­tive invest­ments, with $100 bil­lion in assets under man­age­ment as of Sep­tem­ber 30, 2017.  Pulse Elec­tron­ics is a lead­ing provider of elec­tron­ic com­po­nents that help cus­tomers build the next great prod­uct by pro­vid­ing the need­ed tech­ni­cal solu­tions. Pulse Elec­tron­ics has a long oper­at­ing his­to­ry of inno­va­tion in anten­nas, mag­net­ics and con­nec­tors, as well as the abil­i­ty to ramp quick­ly into high-qual­i­ty, high-vol­ume pro­duc­tion. The Com­pa­ny serves the wire­less and wire­line com­mu­ni­ca­tions, pow­er man­age­ment, military/aerospace, and auto­mo­tive indus­tries. Pulse Elec­tron­ics is a par­tic­i­pat­ing mem­ber of the IEEE, SFF, OIF, HDBaseT Alliance, Comm­Nexus, NFC Forum, MoCA, and IWPC. Vis­it the Pulse Elec­tron­ics web­site at www.pulseelectronics.com.

Media Con­tacts

Pulse Elec­tron­ics
Alyssa Linn / Monique Sid­hom
Sard Verbin­nen & Co
310–201-2040