Measurement Specialties acquires Elekon Industries
Fairfield, NJ; Torrance, CA—Measurement Specialties Inc. (MSI) recently acquired Elekon Industries USA Inc. for $7.5 million, including $4.5 in cash at closing and $3 million in deferred payments.
Fairfield, NJ; Torrance, CA— Measurement Specialties Inc. (MSI) recently acquired Elekon Industries USA Inc. for $7.5 million, including $4.5 in cash at closing and $3 million in deferred payments. Also, Elekon's principles may earn up to an additional $3 million based on the business meeting future performance targets.
'We're very excited about growth prospects for Elekon,' says Frank Guidone, MSI's CEO. 'We expect Elekon to contribute an estimated $10 million in annual sales, with the opportunity to increase sales in excess of 20% per year. We expect the transaction will be accretive to earnings post-close, with an estimated annual, pre-tax income of $1.5 million. Based on progress with pending key customer programs, and regulatory approvals, we could see improvement in projected sales and earnings from those levels.'
Elekon designs and manufactures optical sensors sold mostly to the medical and security markets. Primary products include pulse oximetry sensors for use in hospitals and other primary/secondary care environments. These non-invasive sensors are used to measure pulse rate and blood oxygen content. Elekon designs and manufactures sensors and optical components on an OEM basis for a variety of customers, including Tyco, Phillips and GE.
'Through Elekon, MSI will gain a strategic relationship with India-based Opto Circuits India Ltd, which assembles most of Elekon's products,' says Guidone. 'We believe this relationship could provide attractive alternative manufacturing capacity to our existing facility in China for other value-added sensor assemblies. Additionally, Elekon's high medical concentration solidifies our commitment to growing sensor sales in that segment.'
Thomas Dietiker, Elekon's CEO, adds that, 'Our many OEM customers will greatly benefit from this transaction. As part of MSI, Elekon will be able to leverage the many benefits, such as improved supply chain management, enhanced sales and marketing presence, improved customer service and support and access to growth capital. This will add more value to our products and services and will enable us to launch several planned new products in the near future. I am excited about becoming part of the MSI team and contributing to their success.'
MSI designs and manufactures sensors, and sensor-based consumer products, including sensors that use advanced technologies to measure precise ranges of physical characteristics, such as pressure, motion, force, displacement, angle, flow, and distance. The company uses multiple advanced technologies, including piezoresistive, application specific integrated circuits (ASICs), micro-electromechanical systems (MEMS), piezopolymers, and strain gages to allow their sensors to operate precisely and cost effectively.
Control Engineering Daily News Desk
Jim Montague, news editor