Methode Electronics, a global developer of custom engineered and application-specific products and solutions, announced that it has completed the acquisition of Pacific Insight Electronics Corp., a global lighting, electronics and full-service solutions provider to the transportation industry, in a transaction valued at US$ 114 million.
The deal includes a 30,000 square-foot manufacturing plant in Fresnillo, Zacatecas, which opened in 2007 to address the growing demands for the production of wire-harness solutions.
Pacific Insight is a Vancouver-based global solutions provider offering design, development, manufacturing and delivery of lighting and electronic products and full-service solutions to the automotive and commercial vehicle markets.
Its customer portfolio includes Tier 1 suppliers such BorgWarner, Yanfeng and Meritor, as well as Original Equipment Manufacturers (OEMs) such Ford, Tesla, Caterpillar, Daimler Trucks, PACCAR and Harley Davidson to name a few.
Methode Electronics also operates two manufacturing facilities in Mexico, located in the city of Monterrey, Nuevo Leon, with 75,000 and 138,000 square-feet footprints respectively. Such premises supply plastic injection molding, insert molding, PCB assembly, ultra-sonic welding, assembly, testing with support in research and development, product and tool design, tool building, rapid prototyping and laboratory services.
Methode funded the total consideration of approximately US$ 114 million with available cash and its existing credit facility. Methode expects the acquisition to be accretive to earnings in its current fiscal year ending April 28, 2018.
Methode's President and CEO Don Duda said, "With this acquisition and Methode's global scope, Pacific Insight will meet its customers' requested expansion into Asia and Europe, Methode will broaden its portfolio of advanced technologies for LED based ambient and direct lighting solutions, and the combined operations will be positioned to provide additional opportunities for all our stakeholders, including employees, customers, suppliers and shareholders."
Mr. Duda concluded, "I am delighted to officially welcome the employees of Pacific Insight to Methode Electronics, and look forward to the growth we can achieve as one company."
The Company expects pre-tax costs related to the acquisition in the range of US$ 4.8 million to US$ 5.2 million, of which US$ 1.5 million was recognized in the first quarter.