Key Tronic Corp., a provider of electronic manufacturing services (EMS), today announced that it intends to purchase the assets of Sabre Manufacturing for approximately $5.1 million in cash.
With annual revenue of over $7.0 million and approximately 90 employees, Sabre is a sheet metal fabrication company that operates a 66,000 square foot facility near the Key Tronic campus in Juarez, Mexico.
"We're very pleased to announce our plans to acquire Sabre, which enables us to offer metal fabrication directly to our customers, in combination with our plastic molding, PCB assembly, complete product assembly, design engineering and testing engineering services," said Craig Gates, President and Chief Executive Officer. "This acquisition furthers our strategic focus on providing all the EMS services available from a much larger tier I company, while still bringing the flexibility and high customer service levels of a tier II supplier. We expect a rapid integration of Sabre and have already seen significant interest in our expanded capabilities across both of our customer bases."
The purchase will be funded by Key Tronic's available cash and bank credit line. The transaction is anticipated to close in July and to be immediately accretive to earnings.
About Key Tronic
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.