PETACH-TIKVA, Israel, June 12 /PRNewswire-FirstCall/ --
Eltek Ltd. (Nasdaq: ELTK), the leading Israeli manufacturer of advanced
circuitry solutions, today announced that it has completed the previously
announced purchase of a 76% interest in Kubatronik Leiterplatten GmbH, a
manufacturer of high-end prototype PCBs based in Geislingen, Germany.
The purchase, terms of which have previously been disclosed, was made
through Eltek's newly established subsidiary, EN-Eltek Netherlands 2002 B.V
Founded in 1980 by Mr. Alois Kubat, Kubatronik specializes in short run
and prototype boards, including multi-layer, flex-rigid and high density
interconnect (HDI). Its customers include Alcatel Germany, EADS, Thales, BGT,
Diehl and Siemens. For the twelve-month period ended December 31, 2001,
Kubatronik was profitable and had revenues of euro 3.5 million ($3.1 million).
Commenting on the agreement, Arieh Reichart, President and CEO of Eltek
said, "We are pleased to complete this acquisition, which was announced
earlier this year. Kubatronik will provide Eltek with an instant presence in
this highly lucrative market, as well as an impressive new customer base. We
will work to further expand business in Germany, where the potential demand
for Printed Circuit Boards is approximately $1 billion annually. This
acquisition, along with Eltek's capabilities and experience in the medical,
aerospace and satellite industries, will be fully leveraged through this
Mr. Reichart continued, "Mr. Kubat, founder of Kubatronik, is a highly
regarded figure within the German PCB marketplace, and will continue to serve
as its General Manager. No personnel changes will be made as a result of this
acquisition. Kubatronik has a highly experienced sales, marketing and
customer service team, which will complement and strengthen Eltek's current
capabilities in the European market.
"As Eltek's first European logistics center Kubatronik will continue to
specialize in manufacturing prototype and short production run boards
decreasing the turnaround time for fulfillment of prototype orders for
European customers. Eltek's existing manufacturing facilities will be able to
provide follow-on and mid-sized orders for Kubatronik's existing customers.
Historically, Kubatronik has not been involved in this aspect of the business.
We believe that the synergies between the two companies will be able to
generate increased business, resulting in additional revenue streams for
Eltek," Mr. Reichart concluded.
Eltek is one of Israel's leading manufacturers of printed circuit boards,
the core circuitry of most electronic devices. It specializes in the complex
high-end of PCB manufacturing, i.e., HDI, multi-layered and flex-rigid boards.
Eltek's technologically advanced circuitry solutions are used in today's
increasingly sophisticated and compact electronic products. The Company has
invested heavily in upgrading its production facilities over the past five
Certain matters discussed in this news release are forward-looking
statements that involve a number of risks and uncertainties including, but not
limited to statements regarding expected results in future quarters, risks in
product and technology development and rapid technological change, product
demand, the impact of competitive products and pricing, market acceptance, the
sales cycle, changing economic conditions and other risk factors detailed in
the Company's United States Securities and Exchange Commission filings.
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SOURCE Eltek Ltd.