VPG Signs Definitive Agreement To Acquire Stress-Tek, Inc.
December 15 2015 - 7:30AM
Business Wire
Vishay Precision Group, Inc. (NYSE: VPG), a leading producer of
precision sensors and systems, today announced that it has entered
into a definitive agreement to acquire Stress-Tek, Inc. of Kent,
Washington, a privately held company. The acquisition is expected
to close by December 31, 2015, subject to the satisfaction of
customary conditions.
Stress-Tek is a designer and manufacturer of state-of-the-art,
rugged and reliable strain gage-based load cells and force
measurement systems primarily servicing the North American market.
Their sensors and display systems are used in a wide range of
industries, predominantly in transportation and trucking, for
timber, refuse, aggregate, mining and general trucking
applications.
In commenting on the acquisition, Marc Zandman, Chairman of the
Board of VPG said, “We are excited to welcome the Stress-Tek family
of products into VPG. This acquisition supports our corporate
growth strategy and allows us to expand our existing product
portfolio to new end markets and geographic areas.”
Ziv Shoshani, VPG’s chief executive officer said, “Stress-Tek is
an excellent fit for our onboard weighing product line. They are
well respected in the industries they serve. The company offers an
extensive line of load cells. They also design and manufacture the
electronics to integrate with the load cells and sensors to produce
complete measurement solutions.”
The purchase price for this business is approximately $20.0
million, which includes the acquisition of real estate valued at
$5.5 million, subject to customary post-closing adjustments. VPG
will finance the acquisition through a combination of cash on hand
and third party borrowings. We expect that Stress-Tek will achieve
approximately $9.0 million in annual net sales and approximately
$1.1 million in annual EBITDA in 2015. With expected cost
synergies, we anticipate that Stress-Tek’s annual EBITDA will
increase to approximately $3.0 million over two years.
About VPG
Vishay Precision Group, Inc. (VPG) is an internationally
recognized designer, manufacturer and marketer of: components based
on its resistive foil technology; sensors; and sensor-based systems
specializing in the growing markets of stress, force, weight,
pressure, and current measurements. VPG is a market leader of foil
technology products, providing ongoing technology innovations in
precision foil resistors and foil strain gages, which are the
foundation of the company's force sensors products and its weighing
and control systems. The product portfolio consists of a variety of
well-established brand names recognized for precision and quality
in the marketplace. To learn more, visit VPG at
www.vpgsensors.com.
Forward-Looking Statements
From time to time, information provided by us, including but not
limited to statements in this report, or other statements made by
or on our behalf, may contain "forward-looking" information within
the meaning of the Private Securities Litigation Reform Act of
1995. Such statements involve a number of risks, uncertainties, and
contingencies, many of which are beyond our control, which may
cause actual results, performance, or achievements to differ
materially from those anticipated.
Such statements are based on current expectations only, and are
subject to certain risks, uncertainties, and assumptions. Should
one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those anticipated, expected, estimated, or
projected. Among the factors that could cause actual results to
materially differ include: general business and economic
conditions, changes in the current pace of economic recovery;
difficulties or delays in completing acquisitions (including the
acquisition of Stress-Tek) and integrating acquired companies; the
inability to realize anticipated synergies and expansion
possibilities; difficulties in new product development; changes in
competition and technology in the markets that we serve and the mix
of our products required to address these changes; changes in
foreign currency exchange rates; difficulties in implementing our
ERP systems and the associated impact on manufacturing efficiencies
and customer satisfaction; difficulties in implementing our cost
reduction strategies, such as underutilization of production
facilities, labor unrest or legal challenges to our lay-off or
termination plans, operation of redundant facilities due to
difficulties in transferring production to lower-labor-cost
countries; and other factors affecting our operations, markets,
products, services, and prices that are set forth in our Annual
Report on Form 10-K for the fiscal year ended December 31, 2014. We
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20151215005360/en/
VPGWendy WilsonSenior Director Investor Relations and Corporate
Communications919-374-5501wendy.wilson@vpgsensors.com
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