Benchmark Electronics Acquires The EMS Segment Of CTS Corporation
- Expands Industrial, Aerospace & Defense, and Medical Customer Base
- Expands West Coast New Product Express Capabilities
ANGLETON, Texas, Oct. 3, 2013 /PRNewswire/ -- Benchmark Electronics, Inc. (NYSE: BHE), a leading integrated product design and manufacturing services provider, announced today that the Company has completed an acquisition of the full-service Electronics Manufacturing Solutions (EMS) segment of CTS Corporation (NYSE: CTS). The acquired business is strategically focused on complex, high-mix and low-volume manufacturing in the Industrial, Aerospace & Defense, Medical, and Communications markets.
"We are pleased to welcome our new employees and customers to Benchmark. The customer-focused, highly-flexible business model that CTS has embraced makes the organization an excellent cultural fit with Benchmark," says Gayla J. Delly, CEO and President of Benchmark. "This acquisition supports Benchmark's strategic commitment to expand our portfolio of leading customers in non-traditional and highly regulated markets and also allows us to strengthen the depth and scope of Benchmark's New Product Express capabilities on the West Coast."
"Benchmark is a highly compatible fit for the CTS EMS segment's employees and customers," says Kieran O'Sullivan, President and CEO of CTS Corporation. "This transaction aligns the EMS business with a well-respected and global EMS provider that can offer expanded services including global design and supply chain management. We will work closely with Benchmark to ensure a smooth transition."
The business acquired has a footprint of five locations (4 in North America and 1 in Asia) and approximately 1,000 employees. The total purchase price is approximately $75 million. The transaction is expected to generate annual revenues in excess of $200 million and be accretive to earnings in 2014. The Company will provide more information regarding this transaction in the Third Quarter 2013 earnings call scheduled for October 24, 2013 at 10:00 am CT.
About Benchmark Electronics, Inc.
Benchmark Electronics, Inc. provides integrated manufacturing, design and engineering services to original equipment manufacturers of computers and related products for business enterprises, medical devices, industrial control equipment (which includes equipment for the aerospace and defense industry), testing and instrumentation products, and telecommunication equipment. Benchmark's global operations include 21 facilities in seven countries. Benchmark's Common Shares trade on the New York Stock Exchange under symbol BHE.
This news release contains certain forward-looking statements within the scope of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words "expect," "estimate," "anticipate," "predict," and similar expressions, and the negatives of such expressions, are intended to identify forward-looking statements. Our forward-looking statements may be deemed to include, among other things, the statement "the transaction is expected to generate annual revenues in excess of $200 million and be accretive to earnings in 2014", as well as other statements, express or implied, concerning future operating results or the ability to generate sales, income or cash flow; and Benchmark's business and growth strategies, including expected internal growth and performance goals. Although Benchmark believes that these statements are based upon reasonable assumptions, such statements involve risks, uncertainties and assumptions, including but not limited to industry and economic conditions, customer actions and the other factors discussed in Benchmark's Form 10-K for the year ended December 31, 2012, its other filings with the Securities and Exchange Commission and in its press releases. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.
SOURCE Benchmark Electronics, Inc.