AB Dynamics, the South West-based specialist automotive equipment firm, today said it expects to \u201cgenerate meaningful commercial synergies\u201d from its $11m (\u00a38.1m) acquisition of a US firm.<\/p>\n
Michigan-based eMpulse Test Systems designs and supplies advanced servoelectric test systems to the global automotive industry, which AB Dynamics said would complement its own product portfolio and boost its established customer relationships and global sales infrastructure.<\/p>\n
Announcing the acquisition this morning, Bradford on Avon-headquartered AB Dynamics said it sees significant opportunities to cross-sell eMpulse’s products to its own existing customer base.<\/p>\n
AB already operates from 12 bases in six countries across Europe, North America and Asia, designing, manufacturing and supplying advanced testing, simulation and measurement products to the global transport market.<\/p>\n
It said, its international sales and support network was expected to accelerate the adoption of eMpulse products in geographic markets where eMpulse has historically had limited direct presence, including key regions such as Japan.<\/p>\n
The enlarged testing products business is expected to benefit from increased customer engagement, a broader addressable market and enhanced penetration of existing accounts, supporting long-term value creation.<\/p>\n
Based on unaudited accounts, eMpulse generated an adjusted operating profit of $400,000 on revenue of $5.5m in the year ended 31 December 2025.<\/p>\n
AB said following disruption in its markets during that calendar year, caused directly by the introduction of global tariffs, eMpulse’s trading activity has recovered strongly and is expected to show modest growth in revenue and adjusted operating profit against its three-year average.<\/p>\n
As such, AB\u2019s board expects that the acquisition to be earnings enhancing for the group in its 2027 financial year, with benefits increasing thereafter as sales synergies are delivered.<\/p>\n
eMpulse is being acquired from its three shareholders, who are expected to remain in the business to ensure ongoing delivery of the growth expectations.<\/p>\n
Sarah Matthews-DeMers, AB Dynamics chief executive officer said: “eMpulse’s product suite is highly complementary to the group’s existing portfolio, both in relation to its customer base and its servoelectric technology, which provides increased performance and greater energy efficiency compared to its hydraulic alternatives.<\/p>\n
“eMpulse has a first-class reputation for providing testing products to its North American OEM customer base and we look forward to leveraging the\u00a0established global customer relationships and sales capabilities of AB Dynamics to drive cross-selling and expand this further internationally.<\/p>\n
“We expect the acquisition to provide us with an excellent platform for growth and we are delighted to welcome the eMpulse team to AB Dynamics.”<\/p>\n
Bristol-based Momentum provided corporate finance advice to AB Dynamics for the acquisition.<\/p>\n
Last month AB said it was to take a \u00a34m hit on its underperforming Chinese operations while also warning that its overall trading had become increasingly more challenging due to reduced customer confidence and logistics headwinds arising from the Middle East conflict.<\/p>\n","protected":false},"excerpt":{"rendered":"
Move will ‘complement product portfolio and boost established customer relationships’ says firm<\/p>\n","protected":false},"author":272345,"featured_media":45337,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[57362,2,7],"coauthors":[137101],"class_list":["post-45336","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-acquisitions","category-deals","category-manufacturing","tag-south-west","tag-wiltshire"],"yoast_head":"\n