Circuits Assembly Online Magazine - Kitron Completes Acquisition of EMS Division of API

WINDBER, PA – Kitron has completed the $14.8 million acquisition of the EMS division of API Technologies here.

Kitron will consolidate the acquired business effective today. Kitron expects the transaction to be earnings neutral in 2019 and earnings enhancing in 2020 and beyond.

"This acquisition is a step change for Kitron in the US market and comes in response to customer demand for a more substantial presence in this important market," said Cathrin Nylander, CFO and acting CEO of Kitron.

The acquired business is focused on defense, aerospace, medical/industrial, and communications/consumer. Its 115 Windber employees operate six production lines in a facility of approximately 10,000 sq. m. Total revenues in 2017 amounted to approximately $30 million.

"We know the API business well, and the process from the announcement until closing has further strengthened our confidence in this transaction, which we believe is a win-win proposition. We gain critical mass in the US market, and the Windber facility finds a better home in a group with EMS as its core business,” said Hans Petter Thomassen, VP North America. “We expect the unit to generate an operating profit on a standalone basis going forward and see substantial potential for further profitability improvements when it becomes part of the Kitron group.”