Vishay Precision Group Acquires Dynamic Systems, Inc.
November 04 2019 - 4:30PM
Business Wire
Vishay Precision Group, Inc. (NYSE: VPG), a leading producer of
precision sensors and sensor-based systems, announced it acquired
New York-based Dynamic Systems Inc. (DSI), a specialized provider
of dynamic thermal-mechanical test and simulation systems used to
develop new metal alloys and optimize production processes, for a
purchase price of $41 million, subject to customary adjustments,
plus a potential earn out of up to an additional $3 million.
Commenting on the acquisition, Marc Zandman, Chairman of the
Board of VPG said, “We are pleased with the addition of DSI to the
VPG platform and the value this transaction creates for our
shareholders. Acquiring attractive, profitable businesses is a key
element of our capital allocation strategy to create value.”
Ziv Shoshani, VPG’s Chief Executive Officer, commented: “DSI is
an established, high margin business, with a strong brand and has
the largest installed base of products of its type in the world,
according to market estimates. DSI expands our position in the
steel market and offers opportunities for growth by leveraging our
sales capabilities and market presence, and by expanding DSI’s
product line to address new opportunities.”
Over the past three years, DSI achieved average annual sales of
$16 million and high EBITDA margins. VPG expects DSI’s Gleeble®
Systems to benefit from increasing materials development and
research, due to several long-term trends such as efforts to make
steel and aluminum lighter and stronger for next-generation
applications being developed in the automotive, aerospace, energy,
and heavy industrial markets.
The Company will discuss the acquisition during its fiscal 2019
third-quarter earnings call scheduled for Tuesday, November 5, 2019
at 10AM Eastern.
About DSI
For more than 60 years, Dynamic Systems Inc. has provided
metallurgical research equipment to universities, manufacturers,
metals producers and research institutions around the world. Best
known in the market for its leading brand, Gleeble® Systems, DSI’s
comprehensive family of research tools improve materials and
optimize production processes that benefit provide a competitive
advantage to a wide range of industrial end-markets including
automotive, aerospace, energy, and heavy industry. More information
about Dynamic Systems Inc. and its Gleeble family of products can
be found at the following website: https://gleeble.com/
About VPG
Vishay Precision Group, Inc., is an internationally recognized
designer, manufacturer and marketer of: components based on its
resistive foil technology; sensors; and sensor-based measurements
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. VPG’s shares are
traded on the NYSE under the symbol--VPG. To learn more, visit
www.vpgsensors.com.
Forward-Looking Statements
From time to time, information provided by us, including but not
limited to statements in this press release, 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 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; difficulties or delays in identifying, negotiating and
completing acquisitions and integrating acquired companies
(including the acquisition of Dynamic Systems Inc.); 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; political, economic and military instability in the
countries in which we operate; 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 achieve efficiencies;
significant developments from the recent and potential changes in
tariffs and trade regulation; 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, 2018. 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: https://www.businesswire.com/news/home/20191104005810/en/
Steve Cantor VPG tel.: 857-636-0367 steve.cantor@vpgsensors.com
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