Daniels Electronics Acquired by Australian Firm for $25 Million
By Kerry Slavens | Aug 07, 2012
Daniels Electronics, one of Victoria's longest-running businesses and a leading supplier of high reliability Land Mobile Radio (LMR) radio systems, has been acquired by Australian-founded Codan Limited.
Codan (ASX: “CDA”) designs, manufactures, and markets a diversified range of value-added electronic products for radio communications, metal detection, and mining technology. Codan employs 500 people globally, with products sold into more than 150 countries worldwide.Gerry Wight, Daniels' vice-president of sales and marketing, says Daniels initiated a formal process in January 2012 to find a company with compatible values who would take the firm into the future. The move, Wight adds, was partly in consideration of Robert Small, president and chief operating officer, and Terry Daniels, chairman of the board, both of whom had previously retired from day-to-day operations.
"For Rob and Terry, and all of us, it was important to find someone to keep us in Victoria and [provide] an opportunity to grow the company…" The integration of Daniels into the Codan Radio Communications Division provides Codan with an established North American market and the opportunity to bring Daniels’ products to Codan’s global distribution networks, especially in the emerging world.
Wight says the initial priority will be growing the sales focus into the markets Codan is already in outside of North America." All of Daniels' current management team and staff will remain in place," Wight adds.
The acquisition, scheduled for completion on 17 August 2012, comprises an upfront cash payment of CAD$25 million with the possibility of approximately CAD$2.0 million in additional payments if certain earn-out targets are achieved over the next 18 months. Funding for the transaction, also announced today, will be through a mix of debt and equity. The acquisition of Daniels delivers on Codan’s stated strategy of growing market share and diversifying its radio communications product offering.
Daniels was founded 60 years ago by F. Gordon Daniels, a radio communications officer for the British Columbia Provincial Police in the Prince Rupert region. During his time with the police he helped establish the northern regional radio network and helped construct its radio systems.
Today, Daniels offers a broad range of land mobile radio communications used by specialized market segments, such as public safety, which require high performance and high reliability private communications networks. Key clients include fire services organizations, police, ambulance, and other emergency service providers; military and forestry, organizations; highways and road contractors; and mining and exploration companies.
“Originally a family owned business, Daniels is very happy to be acquired by an Australian company that shares a similar history and culture and that will continue to grow the opportunities for our LMR products,” says Robert Small.