6/28/2004 - Measurement Specialties, Inc. (AMEX: MSS), a designer and manufacturer of sensors and sensor-based consumer products, announced it has acquired the capital stock of Elekon Industries USA, Inc. for $7.5 million ($4.5 cash at close and $3 million in deferred payments). Furthermore, the principles of Elekon can earn up to an additional $3 million based on the business meeting certain performance targets. The transaction closed today.
“We are very excited about the growth prospects for Elekon” commented Frank Guidone, Company CEO. “On a going-forward basis, we expect Elekon to contribute an estimated $10 million in full year sales, with the opportunity to increase sales in excess of 20% per year. We expect the transaction will be accretive to earnings post-close, with an estimated full year pre-tax income of $1.5 million. Based on progress with pending key customer programs (and regulatory approvals), we could see improvement in projected sales and earnings from those levels.”
Elekon (www.elekon.com), based in Torrance, CA, is a designer/manufacturer of optical sensors sold primarily to the medical and security markets. Their primary products include pulse oximetry sensors for use in hospitals and other primary/secondary care environments. These non-invasive sensors are used to measure pulse rate and blood oxygen content. Elekon designs and manufactures sensors and optical components on an OEM basis for a variety of customers including Tyco, Phillips and GE, among others. Colorado-based EMA Partners acted as financial advisor to Elekon in the transaction.
Mr. Guidone added “Through Elekon, the Company will gain a strategic relationship with India-based Opto Circuits India, Ltd, who assembles most of Elekon’s products. We believe this relationship could provide attractive alternative manufacturing capacity to our existing facility in China for other value-added sensor assemblies. Additionally, Elekon’s high medical concentration solidifies our commitment to growing sensor sales in that segment. We will cover the transaction in more detail in the upcoming quarterly call at the end of July.”
“Our many OEM customers will greatly benefit from this transaction” stated Thomas Dietiker, President and CEO of Elekon. “By being part of MSI, Elekon will be able to leverage the many benefits inherent in that relationship such as improved supply chain management, enhanced sales and marketing presence, improved customer service and support and access to growth capital. This will add more value to our products and services and will enable us to launch several planned new products in the near future. I am excited about becoming part of the MSI team and contributing to their success.”
Measurement Specialties is a designer and manufacturer of sensors, and sensor-based consumer products. Measurement Specialties produces a wide variety of sensors that use advanced technologies to measure precise ranges of physical characteristics, including pressure, motion, force, displacement, angle, flow, and distance. Measurement Specialties uses multiple advanced technologies, including piezoresistive, application specific integrated circuits (ASICs), micro-electromechanical systems (MEMS), piezopolymers, and strain gages to allow their sensors to operate precisely and cost effectively.
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