Methode Acquires Pacific Insight
CHICAGO, IL -- (Marketwired) -- 10/03/17 -- Methode Electronics, Inc. (NYSE: MEI) ("Methode"), a global developer of custom engineered and application-specific products and solutions, announced that it has completed the acquisition of Pacific Insight Electronics Corp. ("Pacific Insight"), a global lighting, electronics and full-service solutions provider to the transportation industry, in a cash transaction. Methode funded the total consideration of approximately US$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 April 28, 2018.
Methode's President and CEO Don Duda said, "With this acquisition and Methode's global scope, Pacific Insight will meet its customers' requested expansion into Asia and Europe, Methode will broaden its portfolio of advanced technologies for LED based ambient and direct lighting solutions, and the combined operations will be positioned to provide additional opportunities for all our stakeholders, including employees, customers, suppliers and shareholders." Mr. Duda concluded, "I am delighted to officially welcome the employees of Pacific Insight to Methode Electronics, and look forward to the growth we can achieve as one company."
Pacific Insight is a global solutions provider offering design, development, manufacturing and delivery of lighting and electronic products and full service solutions to the automotive and commercial vehicle markets. A focus on design and manufacturing excellence, responsiveness and customer service has made the company a preferred partner of choice for OEMs. Lighting is fast becoming one of the most critical elements for automotive OEMs to innovate and differentiate their vehicles to attract customers. Pacific Insight's advanced technologies, including LED lighting systems and electronic modules, are driving automotive advancement and creating a better driving experience.
Methode will update guidance to include the acquisition of Pacific Insight and any other relevant factors in conjunction with its second-quarter earnings release.
The Company expects pre-tax costs related to the acquisition in the range of $4.8 million to $5.2 million, of which $1.5 million was recognized in the first quarter.
Foros acted as financial adviser to Methode. Locke Lord LLP, Stikeman Elliott LLP and Jones Day served as counsel to Methode. Ernst & Young supported Methode's due diligence process.
About Methode Methode (NYSE: MEI) is a global developer of custom engineered and application specific products and solutions with manufacturing, design and testing facilities in Canada, China, Egypt, Germany, India, Italy, Lebanon, Malta, Mexico, Singapore, Switzerland, the United Kingdom and the United States. We design, manufacture and market devices employing electrical, electronic, wireless, safety radio remote control, sensing and optical technologies to control and convey signals through sensors, interconnections and controls. Our business is managed on a segment basis, with those segments being Automotive, Interface, Power Products and Other. Our components are in the primary end markets of the automobile, computer, information processing and networking equipment, voice and data communication systems, consumer electronics, appliances, aerospace vehicles and industrial equipment industries. Further information can be found on Methode's website www.methode.com.
Forward-Looking Statements This press release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are subject to the safe harbor protection provided under the securities laws. Methode undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in Methode's expectations on a quarterly basis or otherwise. The forward-looking statements in this press release involve a number of risks and uncertainties. The factors that could cause actual results to differ materially from our expectations are detailed in Methode's filings with the Securities and Exchange Commission, such as our annual and quarterly reports. Such factors may include, without limitation, the following: (1) dependence on a small number of large customers, including two large automotive customers; (2) dependence on the automotive, appliance, computer and communications industries; (3) investment in programs prior to the recognition of revenue; (4) timing, quality and cost of new program launches; (5) ability to withstand price pressure, including pricing concessions; (6) currency fluctuations; (7) customary risks related to conducting global operations; (8) ability to successfully market and sell Dabir surfaces; (9) dependence on our supply chain; (10) income tax rate fluctuations; (11) dependence on the availability and price of raw materials; (12) fluctuations in our gross margins; (13) location of a significant amount of cash outside of the U.S.; (14) the effect of a catastrophic event or significant business interruption at one of our facilities; (15) ability to keep pace with rapid technological changes; (16) a breach of our information technology systems; (17) ability to avoid design or manufacturing defects; (18) ability to compete effectively; (19) ability to protect our intellectual property; (20) ability to successfully benefit from acquisitions and divestitures; (21) the recognition of impairment charges; and (22) costs and expense due to regulations regarding conflict minerals.
For Methode: Kristine Walczak Dresner Corporate Services 312-780-7205 email@example.com
Source: Methode Electronics, Inc.