SPOKANE VALLEY, WA - Key Tronic Corporation (Nasdaq:KTCC), a provider of electronic manufacturing services (EMS), today announced that it has signed a letter of intent to acquire CDR Manufacturing, Inc. (dba Ayrshire Electronics) for $46.9 million in cash. The letter of intent includes a 75 day exclusivity period for completion of due diligence and negotiation of the definitive agreement.
CDR has annual revenue of approximately $120 million and provides printed circuit board assembly and other EMS services to a diversified customer base, including a number of large multi-national companies. It operates manufacturing facilities in Minnesota, Arkansas, Mississippi, Kentucky and Mexico. The acquisition, if consummated, is expected to be immediately accretive to earnings.
"The planned acquisition of Ayrshire would represent a major step forward for Key Tronic, significantly expanding our printed circuit board assembly capabilities and extending our customer base with new multi-national companies," said Craig Gates, President and Chief Executive Officer.
The letter of intent is not binding on either party and the proposed acquisition is subject to Key Tronic's completion of its due diligence, the negotiation and execution of definitive agreements relating to the proposed acquisition, and final approval of Key Tronic's financing for the transaction, among other things.
Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico and China. The Company provides its customers full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution. Its customers include some of the world's leading original equipment manufacturers. For more information about Key Tronic visit: www.keytronic.com.