Author: Tronserve admin
Wednesday 28th July 2021 05:32 AM
Kitron To Acquire the EMS Division Of API Technologies Corp
Kitron has entered into an agreement with API Technologies Corp. to acquire its EMS division in the United States. The exchange marks a considerable strengthening of Kitron’s position in the US market.
“The transaction will significantly strengthen our position in the US market, particularly within the defence industry. Important customers have wanted us to expand our presence in the US, and we think this is a great opportunity to do so,” said Peter Nilsson, CEO of Kitron.
The procedures of the EMS division are highly interchangeable to Kitron’s existing operations and are expected to provide added value to current operations, in particular in the United States. The division’s main concentration is on defense, aerospace, medical/industrial, and communications/consumer, and it is well aligned with Kitron’s overall strategy. The business is located in Windber, Pennsylvania, close to Kitron’s current US facility in Johnstown, Pennsylvania, with roughly 100 employees operating a total of six production lines and a facility of about 10,000 square meters. Total incomes in 2017 amounted to approximately USD $30 million.
“ We have examined this business carefully over time and see ideal potential for integrating the API EMS division with the Kitron group, having EMS as its core business. It has a very interesting customer base, a promising order book and a highly skilled staff. We hope the division to produce an operating profit on a stand-alone basis going forward, and see substantial potential for further profitability improvements by joining forces with Kitron and increasing utilization,” Mr Nilsson said.
The purchase price is USD 15.9 million in cash, identical to net asset value, which is supported through existing bank arrangements. Closing is expected to take place in the first quarter of 2019, subject to necessary governmental approvals. Kitron expects the transaction to be earnings neutral in 2019 and earnings enhancing in 2020 and beyond.
This article is originally posted on EMSNOW.COM