intest corporation, an independent designer, manufacturer and marketer of thermal management products and semiconductor automatic test equipment (ate) interface solutions, announced that it has acquired all of the outstanding stock of ambrell corporation (ambrell).

ambrell, a privately-held company based in scottsville, new york, is a provider of precision induction heating systems under 500 kw power and is known for its application and engineering experience. ambrell's innovative and proprietary heating solutions began over 30 years ago with power supply units for induction heating.

ambrell's systems are used to conduct fast, efficient, repeatable non-contact heating of metals or other electrically conductive materials, to transform raw materials into finished parts. ambrell products are widely recognized for delivering engineered solutions to end users, systems integrators and oems, and for a wide range of manufacturing environments.

ambrell's systems are diversified across industries, applications and geographies. primary markets served by ambrell presently include automotive, aerospace, machinery, wire & fasteners, medical, semiconductor, food & beverage, and packaging.

ambrell has a global reach for sales, services and applications consulting through company offices in the united states, england and the netherlands, and certified partners throughout the asia-pacific region and eastern europe. ambrell estimates that the global market for its induction heating manufacturing solutions is greater than $400 million.

the purchase price for ambrell was $22 million in cash paid at closing, which is subject to post-closing working capital adjustment. additional consideration may be paid based upon a multiple of adjusted ebitda for 2017 and 2018, not to exceed $18 million.

the acquisition closed on may 24, 2017, is expected to contribute $20 million to $25 million in net revenues to intest's consolidated operations for calendar year 2018 and to be accretive beginning in the third quarter of 2017. upon the closing of the transaction, ambrell became a wholly owned subsidiary of intest.

robert e. matthiessen, intest executive chairman, president and ceo, commented, "we are very excited about the combination of these two organizations, and we welcome the ambrell team to intest. the ambrell acquisition will complement our current thermal technologies and broaden our position in industrial markets with a diverse customer base in a broader manufacturing space, including in many emerging markets, consumer product packaging, fiber-optic, automotive and other markets.

“this transaction increases our capabilities, reach and value proposition benefiting our customers and advances our strategy of expanding our presence in new markets across the technology landscape -- further growing and transforming intest corporation into a broad-based thermal solutions company, while continuing to supply our valued customers in the semiconductor test arena."

james pelrin, intest evp and chief operating officer, noted, "this transaction provides broad thermal solutions to a customer base with diverse application requirements for product development and production. the addition of ambrell provides turnkey systems and application services capability where customers can meet pressing challenges to conditioning all sorts of materials. it also brings synergies in software development, engineering and manufacturing to the thermal products segment."

anthony mazzullo, ambrell president, commented, "i am excited about the prospects of being a wholly owned subsidiary of intest corporation. we believe that providing the best customer experience in our industry has set us apart from our competitors and has been key to our success, taking us from a small start-up 30 years ago to a highly respected supplier in today's marketplace.

“i am confident that ambrell's customers and employees will benefit significantly from the potential advantages of being a part of a larger industrial equipment company. we expect to uncover exciting new opportunities for our employees, customers and supply chain. the ambrell team is looking forward to working with the intest team to leverage the respective strengths of our organizations."