PETACH-TIKVA, Israel, Feb. 19 /PRNewswire-FirstCall/ --
Eltek Ltd. (Nasdaq: ELTK), the leading Israeli manufacturer of advanced
circuitry solutions, today announced that it has signed a memorandum of
understanding to purchase 76% of a privately held German PCB manufacturer for
approximately $2 million. Eltek anticipates closing the purchase within
The Company specializes in short run and prototype boards, including
multi-layer, flex-rigid and high density interconnect (HDI). Its customers
include companies engaged in telecommunications, defense, aerospace and
industrial measurement equipment. Current employees will remain with the
Company following the acquisition.
Commenting on the agreement, Arieh Reichart, President and CEO of Eltek
said, "We are acquiring a well-established Company in the specialty PCB
market, with a solid reputation in the German market and a loyal customer
base. The Company has a strong sales and marketing staff that will be focused
on significantly enhancing business activities in Germany and Israel. This
provides Eltek with instant and substantial inroads into the German market,
while complimenting its existing relationships throughout the rest of Europe.
This potential acquisition will provide Eltek with extremely capable
employees, as well as additional sales and marketing channels. This new sales
and marketing strength will prove vital to Eltek's prominence in the
marketplace as we work to expand our presence in Germany, as well as continue
our efforts to grow throughout Europe.
"Given our recent efforts to improve efficiency at our main production
facility in Israel, we are well equipped to handle a production increase.
This potential acquisition furthers our efforts to establish Eltek as the
standard for high-end printed circuit board technology," Mr. Reichart
The Company noted that it would discuss this, as well as other recent
developments when it reports its fourth quarter and year-end 2001 financial
results on Thursday, February 21, 2002.
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.
You may register to receive Eltek's future press releases or to download a
complete Digital Investor Kit(TM) including press releases, regulatory filings
and corporate materials by clicking on the "Digital Investor Kit(TM)" icon at
MAKE YOUR OPINION COUNT - Click Here
SOURCE Eltek Ltd.