Manufacturer looks at extra $5M in profits with deal

Sun Hydraulics Corp. acquired parts of Enovation Controls, an Oklahoma-based electronic control, display and instrumentation company, in a deal worth $200 million.

Officials with Sarasota-based Sun expect the purchase, which could close within a month, to add annual profits of at least $5 million by 2020. The company, in a statement, also projects additional earn-out potential of $50 million over 27 months from the acquisition.

Sun, which manufacturers screw-in manifold valves for worldwide markets, specifically acquired Enovation Controls' power controls and vehicle technologies lines of business, according to the release. Sun will maintain that part of Enovation Controls as a separate standalone company, with co-founder Kennon Guglielmo remaining involved on the leadership team, the release adds. Enovation Controls' two other lines of business, natural gas production controls and engine controls and fuel systems, will operate as a newly formed company not owned by Sun. Enovation Controls has about 300 employees, spread between the United States, England, Germany, India and China.

“Enovation Controls' premium products support this focus and are an excellent fit with the Sun brand," Sun President and CEO Wolfgang Dangel says in the statement. “The (power controls and vehicle technologies) businesses are highly successful. They operate in some of the same industries Sun currently serves, while providing diversification opportunities in markets such as marine, power systems and recreational vehicles. Enovation Controls' products will complement Sun's current offerings in mobile and industrial applications as hydraulic systems increasingly incorporate electronics."