Benchmark Electronics, Inc. (NYSE: BHE), a leading integrated product design and manufacturing services provider, announced today that the Company has completed an acquisition of the full-service Electronics Manufacturing Solutions (EMS) segment of CTS Corporation (NYSE: CTS). The acquired business is strategically focused on complex, high-mix and low-volume manufacturing in the Industrial, Aerospace & Defense, Medical, and Communications markets.
“We are pleased to welcome our new employees and customers to Benchmark. The customer-focused, highly-flexible business model that CTS has embraced makes the organization an excellent cultural fit with Benchmark,” says Gayla J. Delly, CEO and President of Benchmark. “This acquisition supports Benchmark’s strategic commitment to expand our portfolio of leading customers in non-traditional and highly regulated markets and also allows us to strengthen the depth and scope of Benchmark’s New Product Express capabilities on the West Coast.”
“Benchmark is a highly compatible fit for the CTS EMS segment’s employees and customers,” says Kieran O’Sullivan, President and CEO of CTS Corporation. “This transaction aligns the EMS business with a well-respected and global EMS provider that can offer expanded services including global design and supply chain management. We will work closely with Benchmark to ensure a smooth transition.”
The business acquired has a footprint of five locations (4 in North America and 1 in Asia) and approximately 1,000 employees. The total purchase price is approximately $75 million. The transaction is expected to generate annual revenues in excess of $200 million and be accretive to earnings in 2014. The Company will provide more information regarding this transaction in the Third Quarter 2013 earnings call scheduled for October 24, 2013 at 10:00 am CT.
About Benchmark Electronics, Inc.
Benchmark Electronics, Inc. provides integrated manufacturing, design and engineering services to original equipment manufacturers of computers and related products for business enterprises, medical devices, industrial control equipment (which includes equipment for the aerospace and defense industry), testing and instrumentation products, and telecommunication equipment. Benchmark’s global operations include 21 facilities in seven countries. Benchmark’s Common Shares trade on the New York Stock Exchange under symbol BHE.