Codan Limited has entered into an agreement to acquire all of the shares in Canadian-based company, Daniels Electronics Limited (Daniels), a leading designer, manufacturer and supplier of land mobile radio communications solutions in North America.
The acquisition is scheduled for completion on 17 August 2012 subject to a number of conditions typical for transactions of this nature.
Daniels offers a broad range of land mobile radio communications used by specialised market segments, such as public safety, which require high performance and high reliability private communications networks. Key clients include fire services organisations, police, ambulance and other emergency service providers, military, forestry organisations, highways and road contractors and mining and exploration companies.
Daniels has an extensive distribution network and a strong public and private client base, predominantly located in Canada and the United States.
The business offers a catalogue of differentiated products that focus on power- efficient infrastructure solutions, which are well suited to the needs of customers in the emerging world.
Codan’s Managing Director, Donald McGurk, said “The acquisition of Daniels delivers on Codan’s stated strategy of growing market share and diversifying its radio communications product offering. The Board believes that Codan’s extensive international distribution network will deliver significant growth opportunities to the Daniels business. Codan will seek to offer land mobile radio solutions across its global distribution network, especially in the emerging world”.
Codan’s Divisional President and General Manager for Radio Communications, Kevin Kane, said “Land mobile radio is an outstanding complement to Codan’s existing communications solutions, distribution network and customer base. Many of Codan’s customers already require these solutions in addition to high frequency radio systems, and most of our existing distributors are active in the land mobile radio market”.
The acquisition of Daniels is expected to be earnings-per-share accretive from FY14.
Importantly, Codan’s balance sheet strength will be maintained following the acquisition and capital raising, allowing the company to continue to explore long-term strategic initiatives to enhance group value.
Daniels will be integrated into Codan’s Radio Communications division to capture synergies by offering its products and solutions through Codan’s global distribution networks and generating supply chain efficiencies.
Codan is pleased that all of Daniels’ senior management team, who have a long and successful history with the company, are excited to remain with the business.
The full details of the acquisition can be viewed at: http://www.codan.com.au/Portals/0/investorpubs/Acquisition%20and%20equity_daniels.pdf