SARASOTA, Fla.--(BUSINESS WIRE)--Helios Technologies (Nasdaq: HLIO), a global leader in highly engineered motion control and electronic controls technology for diverse end markets, today announced that it completed the acquisition of BWG Holdings I Corp. for $218.5 million from investment funds affiliated with AEA Investors LP. The Company previously announced on October 12, 2020 that it had entered into a definitive agreement dated October 9, 2020 to acquire Balboa.
Balboa is an innovative market leader of electronic controls for the health and wellness industry with proprietary and patented technology that enables end-to-end electronic control systems for therapy bath and spas. Headquartered in Costa Mesa, CA, Balboa is a global operation selling into 47 different countries and utilizing a new state-of-the-art manufacturing facility in Baja, Mexico.
“This is another milestone in our Company’s history, and we are excited to welcome the Balboa team to the Helios family,” commented Josef Matosevic, the Company’s President and Chief Executive Officer. “Strategically, this acquisition is our first step in a multi-year journey to build out our Electronics segment into a top industry player. The deal aligns entirely with our Vision 2025 strategy and will have very attractive financial returns for our shareholders from day one. Additionally, I have already received very receptive feedback from some existing and potential new customers around areas for product development that Helios and Balboa will be able to create together.”
“Helios has financed the Balboa acquisition with the amended credit agreement and existing cash of $16.2 million,” stated Tricia Fulton, Helios’s Chief Financial Officer. “On a pro forma basis, we expect our 2020 estimated year‐end net debt‐to‐Adjusted EBITDA leverage ratio to be approximately 3.4x. We remain committed to a long‐term net debt leverage target of less than 2.0x and expect to continue to benefit from our strong cash flows to support debt reduction and our organic growth initiatives.”
About Helios Technologies
Helios Technologies is a global leader in highly engineered motion control and electronic controls technology for diverse end markets, including construction, material handling, agriculture, energy, recreational vehicles, marine, health and wellness. Helios sells its products to customers in over 85 countries around the world. Its strategy for growth is to be the leading provider in niche markets, with premier products and solutions through innovative product development and acquisition. The company has paid a cash dividend to its shareholders every quarter since becoming a public company in 1997. For more information please visit: www.heliostechnologies.com.
