© Electronics Production | August 22, 2013

Nistec to acquire Eltek

Israeli EMS-provider Nistec will acquire a majority stake of fellow Israeli PCB manufacturer Eltek.
The companies have entered into an investment agreement, where Nistec will acquire 3.5 million ordinary shares for USD 4.2 million. And on top of that, the company is also acquiring all the holdings of Eltek's major shareholder – Mr. Yossi Maiman (24.1%) – which will make Nistec, upon completion of the transactions, the majority stakeholder with 50.5%.

Erez Meltzer, Chairman of the Board of Directors of Eltek, commented "After 25 years of being the controlling shareholder of Eltek, Mr. Maiman decided to sell his holdings in the Company to a new owner with strategic ties to the Company's business. Nistec's investment in Eltek will enable Eltek to continue to grow and strengthen its leading position in the high-end PCB industry and expand into new niche markets within the industry. Eltek has presented nice profitability in the last nine quarters and I am confident that it will continue on this track in the future."

Arieh Reichart, President and Chief Executive Officer of Eltek commented, "I would like to thank Mr. Maiman for his long relationship with the Company, supporting our 10 fold growth since he first acquired shares in Eltek, and helping in its positioning at the very front of the worldwide Flex-Rigid PCB industry."

"We congratulate and welcome Nistec following its decision to significantly invest in Eltek. This investment is an important validation of our vision and achievements and will support our long-term growth plans," Mr. Reichart concluded.

The investment agreement and certain ancillary agreements are subject to approval at a shareholder meeting scheduled to take place within 60 days.


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