CHICAGO, IL -- Methode Electronics has entered into a definitive agreement to acquire Pacific Insight Electronics for $114 million in an all-cash transaction.

Methode will fund the total consideration of approximately $114 million with available cash and its existing credit facility. Methode expects the acquisition to be accretive to earnings in its current fiscal year ending Apr. 28.

The purchase price represents a valuation multiple of 8.6 times Pacific Insight's adjusted EBITDA, excluding revenue and cost synergies, for the trailing 12 months ended Mar. 31, 2017. 

The EMS company employs approximately 1,100 people worldwide and annual revenue for the year ended Mar. 31 was approximately US $99 million.

Methode president and CEO Don Duda said, "Pacific Insight's innovation and technology in LED-based ambient and direct lighting will expand our presence within the automotive interior, as well as augment our efforts in overhead console and other areas. Additionally, because of Pacific Insight's reputation as an expert in lighting, we see the potential to bring Pacific Insight's technology and expertise to our non-automotive customers as well. Finally, the addition of Pacific Insight will advance our objective to pursue strategic acquisitions where we can leverage our core competencies and provide an attractive value proposition for our shareholders."

Pacific Insight's CEO Stuart Ross commented, "Methode is the ideal partner for us given the complementary nature of our products and expertise. Importantly, Methode's global manufacturing footprint will provide us the ability to meet our customers' requested expansion into Asia and Europe. As part of Methode, we will be uniquely positioned to accelerate our innovations, and at the same time, strengthen and scale operations in a strategic manner. The size and strength of Methode will provide additional opportunities for all our stakeholders, including employees, customers, suppliers and local communities that we would not have had on our own. For our shareholders, this transaction will create compelling value by providing them liquidity at an attractive valuation and premium to market in an all-cash transaction."

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