MINNEAPOLIS -- Nortech Systems will acquire the EMS assets of Mankato, MN-based Winland Electronics for an undisclosed amount.

The deal between competing electronics manufacturing services providers is subject to customary closing conditions; the tentative closing date is Jan. 1. As part of the deal, Nortech will lease the 58,000 sq. ft. facility comprised of manufacturing, warehouse and office space.

"We're pleased to expand our world-class manufacturing capabilities, including adding valuable new capacity for printed circuit board assemblies," said Mike Degen, Nortech president and CEO. "Winland had developed a reputation for excellence in design and manufacturing, and together we'll advance that success going forward."

Degen commented that Nortech Systems intends to continue operations in Mankato and anticipates this acquisition will be accretive starting in the second half of fiscal 2011. Winland reported losses of $1.19 million on sales of $13.2 million during the first three quarters of 2010. Nortech's profits through the September quarter were $369,000 on sales of $72.4 million.

"Winland's existing customer base nicely complements ours, offering further diversification and additional growth opportunities," explained Curt Steichen, senior vice president of Nortech Systems' commercial operations. He added that the Winland operation will provide needed EMS capacity to support the growth Nortech Systems is experiencing in its industrial and medical markets.

Nortech Systems currently operates manufacturing facilities in Baxter, Bemidji, Blue Earth, Merrifield and Milaca, MN; Augusta, WI; and Monterrey, Mexico.

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