© mikael damkier dreamstime.com General | December 03, 2019
Standex International buys Torotel Inc.
Standex International Corporation and Torotel Inc. have reached a definitive agreement for Standex to acquire Torotel for approximately USD 48 million in cash.
The deal, which includes the assumption of net debt of approximately USD 1.4 million, is expected to close in early 2020, according to a press release, and will be subject to customary closing conditions and regulatory approvals, including the approval of Torotel shareholders. Torotel specializes in the custom design, manufacture and sale of precision magnetic components including electro-mechanical assemblies, high-voltage transformers, dry-type transformers, toroidal coils, and other defense and commercial aerospace applications. In the press release, Torotel CEO Herb Sizemore said, “We are excited to join a global leader like Standex with a similar culture and execution focus to our own. We see this as a great opportunity for our employees and customers. The acquisition will allow us to leverage our shared expertise, manufacturing know-how and solid customer relationships. As a result, we expect to be able to compete more effectively, particularly in the aerospace and defense sectors." Standex CEO David Dunbar said, "Torotel is a strong strategic fit with highly complementary capabilities to our existing high reliability magnetics portfolio, further adding significant technical and application expertise as well as strengthening our value proposition with industry leading customers. Torotel's customized and highly-engineered solutions are very well-positioned in the aerospace and defense sectors, particularly for new platforms that are in the early stages of ramping. These end markets are characterized by large and growing addressable markets with long-term contracts based on strong engineer-to-engineer relationships and demanding technical standards, requiring close partnership with suppliers. Founded in 1956 and headquartered in Olathe, Kansa, Torotel has 174 employees, with additional operating facilities in Olathe and Hatfield, Pennsylvania. Standex International is a multi-industry manufacturer in five broad business segments: engraving, electronics, engineering technologies, hydraulics, and food service equipment with operations around the globe.