CTS Corporation recently announced the acquisition of Orion Manufacturing, Inc., a privately held company, for approximately $10 million in cash. According to a company spokesperson, the acquisition will broaden the company's customer base within targeted markets and enhance its ability to provide customers with added value services. Under the terms of the agreement, CTS may pay a contingent earn out of up to $1.75 million in cash, based on the achievement of certain financial targets in 2008 and 2009. Orion is a contract electronics manufacturer based in San Jose, Calif., providing turnkey electronics manufacturing services to customers in the defense and aerospace, industrial and medical markets. Full year 2007 sales were approximately $27 million. CTS expects the transaction to be accretive in year one. The acquisition combines Orion's capabilities, with CTS' Electronics Manufacturing Solutions (EMS) business headquartered in Moorpark, Calif. CTS expects to achieve significant synergies by combining the Orion operation with the CTS operation in Santa Clara, Calif. "Orion Manufacturing is a well respected, highly focused contract manufacturer with a strong customer base and excellent service capabilities specializing in low volume, high mix assemblies," says Vinod M. Khilnani, the company's president and chief executive officer. "Orion has built a solid track record of providing competitive, on-time quality manufacturing services, and it's business model complements our EMS business." For more information about CTS, visit the company's Web site. |
