MALVERN, Pa.--(BUSINESS WIRE)--
Vishay Precision Group, Inc. (NYSE: VPG), a leading producer of
precision sensors and systems, today announced that it has entered into
a definitive agreement to acquire Stress-Tek, Inc. of Kent, Washington,
a privately held company. The acquisition is expected to close by
December 31, 2015, subject to the satisfaction of customary conditions.
Stress-Tek is a designer and manufacturer of state-of-the-art, rugged
and reliable strain gage-based load cells and force measurement systems
primarily servicing the North American market. Their sensors and display
systems are used in a wide range of industries, predominantly in
transportation and trucking, for timber, refuse, aggregate, mining and
general trucking applications.
In commenting on the acquisition, Marc Zandman, Chairman of the Board of
VPG said, “We are excited to welcome the Stress-Tek family of products
into VPG. This acquisition supports our corporate growth strategy and
allows us to expand our existing product portfolio to new end markets
and geographic areas.”
Ziv Shoshani, VPG’s chief executive officer said, “Stress-Tek is an
excellent fit for our onboard weighing product line. They are well
respected in the industries they serve. The company offers an extensive
line of load cells. They also design and manufacture the electronics to
integrate with the load cells and sensors to produce complete
measurement solutions.”
The purchase price for this business is approximately $20.0 million,
which includes the acquisition of real estate valued at $5.5 million,
subject to customary post-closing adjustments. VPG will finance the
acquisition through a combination of cash on hand and third party
borrowings. We expect that Stress-Tek will achieve approximately $9.0
million in annual net sales and approximately $1.1 million in annual
EBITDA in 2015. With expected cost synergies, we anticipate that
Stress-Tek’s annual EBITDA will increase to approximately $3.0 million
over two years.
About VPG
Vishay Precision Group, Inc. (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.vpgsensors.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; difficulties or delays in completing acquisitions
(including the acquisition of Stress-Tek) and integrating acquired
companies; 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 ERP systems
and the associated impact on manufacturing efficiencies and customer
satisfaction; 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 fiscal year ended
December 31, 2014. We undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151215005360/en/
VPG
Wendy Wilson
Senior Director Investor Relations and
Corporate Communications
919-374-5501
[email protected]
Source: VPG