MALVERN, Pa.--(BUSINESS WIRE)--
Vishay Precision Group, Inc. (NYSE: VPG) ("VPG" or the “Company”), a
leading producer of precision sensors and systems, based on its
resistive foil technology, today announced the signing of a definitive
agreement to acquire the assets of George Kelk Corporation (“KELK”), of
Toronto Canada, a privately held company. The acquisition is expected to
close by January 31, 2013, subject to the satisfaction of customary
conditions.
KELK is a designer and manufacturer of highly accurate, high technology
mission critical electronic measurement and control equipment used by
metals rolling mills and mining applications throughout the world.
Commenting on the acquisition, Marc Zandman, Chairman of the Board of
VPG said, “This is the first acquisition by VPG and we are excited to
welcome the KELK family into VPG. This acquisition follows our corporate
growth strategy and allows us to expand our existing product portfolio
of complementary products that use resistive foil technology.”
Commenting on the acquisition, Ziv Shoshani, Chief Executive Officer of
VPG, said, “KELK is an excellent fit with VPG’s Weighing and Control
Systems segment. Their products are complementary to our process
weighing market sector for weighing and force measurement applications
in the steel industry, where we are present with our two leading brand
names of Nobel Weighing Systems and BLH. KELK is a worldwide leader in
optical and roll force measurement solutions, which are based on VPG’s
resistive foil technology.”
Ziv Shoshani also stated, “Beyond the complementary products, KELK will
widen and strengthen our geographic footprint in the steel market, in
which VPG is mainly in Europe while KELK is strong in Asia, Latin
America and North America and certain emerging markets. This will enable
us to achieve synergies in the steel industry on a worldwide basis.”
The purchase price for this business is approximately $50 million
Canadian, subject to customary post-closing adjustments. VPG will
finance the acquisition through a combination of cash on hand and third
party borrowings. KELK experienced an average of approximately $30.0
million Canadian in annual net sales and an average of approximately
$8.0 million Canadian in annual EBITDA over the last two years. The
Company looks forward to adding an operation with this successful track
record to its business for the future.
Conference Call and Webcast
A conference call and simultaneous audio webcast will take place at
10:00 a.m. (ET) on December 19, 2012. To access the conference call,
interested parties may call 888-317-6016, internationally 1-412-317-6016
and Canada 1-855-669-9657, and enter conference number: 1002-2513, or
log on to the IR page of the VPG website at http://ir.vishaypg.com
for listen-only mode.
A replay will be available approximately one hour after the completion
of the call by calling toll-free 877-344-7529 or internationally
+1-412-317-0088 and using the conference number: 1002-2513. The replay
of the event will be available on the company's website at http://ir.vishaypg.com.
It will be available via phone and website for a limited time.
About Vishay Precision Group
Vishay Precision Group (VPG) is an internationally recognized designer,
manufacturer and marketer of: components based on its resistive foil
technology; sensors; and sensor-based systems specializing in the
growing markets of stress, force, weight, pressure, and current
measurements. VPG is a market leader of Foil Technology Products,
providing ongoing technology innovations in precision foil resistors and
foil strain gages, which are the foundation of the Company's Force
Sensors Products and its Weighing and Control Systems. The product
portfolio consists of a variety of well-established brand names
recognized for precision and quality in the marketplace. To learn more,
visit VPG at www.vishaypg.com.
Forward-Looking Statements
From time to time, information provided by us, including but not limited
to statements in this report, or other statements made by or on our
behalf, may contain "forward-looking" information within the meaning of
the Private Securities Litigation Reform Act of 1995. Such statements
involve a number of risks, uncertainties, and contingencies, many of
which are beyond our control, which may cause actual results,
performance, or achievements to differ materially from those anticipated.
Such statements are based on current expectations only, and are subject
to certain risks, uncertainties, and assumptions. Should one or more of
these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from
those anticipated, expected, estimated, or projected. Among the factors
that could cause actual results to materially differ include: general
business and economic conditions, changes in the current pace of
economic recovery, including if such recovery stalls or does not
continue as expected; difficulties or delays in completing acquisitions
and integrating acquired companies and businesses, including KELK, the
inability to realize anticipated synergies and expansion possibilities,
difficulties in new product development; changes in competition and
technology in the markets that we serve and the mix of our products
required to address these changes; changes in foreign currency exchange
rates; difficulties in implementing our cost reduction strategies such
as underutilization of production facilities, labor unrest or legal
challenges to our lay-off or termination plans, operation of redundant
facilities due to difficulties in transferring production to
lower-labor-cost countries; and other factors affecting our operations,
markets, products, services, and prices that are set forth in our annual
report on Form 10-K for the year ended December 31, 2011. We undertake
no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events, or
otherwise.
Vishay Precision Group, Inc.
Joseph DeSimone, 484-321-5327
Investor
Relations
[email protected]
Source: Vishay Precision Group, Inc.