CTS purchasing Smtek International
Moorpark, CA—Smtek International Inc. reports that it has agreed to be acquired by CTS Corp. The acquisition is subject to approval by Smtek's shareholders, and is expected to close in the first calendar quarter of 2005.
Moorpark, CA— Smtek International, Inc. reports that it has agreed to be acquired by CTS Corp. The acquisition is subject to approval by Smtek's shareholders, and is expected to close in the first calendar quarter of 2005.
The agreement calls for CTS to acquire all of Smtek's outstanding shares. Terms of the acquisition include payment to Smtek's common shareholders of $14.20 to $15.00 per share with 75% in cash, and 25% in CTS common stock. The final amount paid depends on a formula that includes the price per share of CTS common stock for the next 20 trading days. CTS will also assume all of Smtek's outstanding debt.
CTS manufactures electronic sensors and components, and provides electronics manufacturing services (EMS), and has annual revenues of about $521 million. It's headquartered in Elkhart, Indiana, and has operations worldwide.
Once the acquisition is completed, organizers plan to combine Smtek with CTS' EMS business unit, Interconnect Systems. The combination is expected to expand the operational footprint, customer base, and capabilities of both businesses in the EMS market.
'This acquisition not only represents a milestone in the company's history, but also recognizes its achievement in emerging as a successful, effectively managed business with a strong competitive presence in the EMS industry,' says James Burgess, Smtek's chairman. 'And by combining Smtek's relative strengths with those of CTS, we feel the result will be significant business and financial benefits for both companies.'
Smtek is an electronics manufacturing services (EMS) provider serving original equipment manufacturers (OEMs) in the medical, industrial instrumentation, telecommunications, security, financial services automation, aerospace and defense industries. It offers integrated solutions across the entire product lifecycle, from design to manufacturing to end-of-life services.
Control Engineering Daily News Desk
Jim Montague, news editor