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Electronics Production |

Kitron completes its acquisition of API's EMS business

EMS provider Kitron announces has completed the acquisition of the EMS division of API Technologies Corp., substantially strengthening its position in the US market.

The transaction is completed according to the terms set out in the original announcement back i November 2018, including all necessary governmental approvals. Kitron will consolidate the acquired business effective immediately. "This acquisition is a step change for Kitron in the US market and comes in response to customer demand for a more substantial presence in this important market," says Cathrin Nylander, CFO and acting CEO of Kitron, in a press release. The acquired business is focused on defence, aerospace, medical/industrial, and communications/consumer, and it is well aligned with Kitron's overall strategy. It is located in Windber, Pennsylvania, close to Kitron's current US facility in Johnstown, Pennsylvania, with 115 employees operating a total of six production lines and a facility of approximately 10'000 square meters. Total revenues in 2017 from the business amounted to about USD 30 million. "We know the API business well, and the process from the announcement until closing has further strengthened our confidence in this transaction, which we believe is a win-win proposition: We gain critical mass in the US market and the Windber facility finds a better home in a group with EMS as its core business. We expect the unit generate an operating profit on a stand-alone basis going forward and see substantial potential for further profitability improvements when it becomes part of the Kitron group," adds Hans Petter Thomassen, Vice President North America. The purchase price to be paid, after certain post-signing adjustments, is USD 14.8 million. Kitron expects the transaction to be earnings neutral in 2019 and earnings enhancing in 2020 and beyond.

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March 15 2024 2:25 pm V22.4.5-2
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