Standex International Corporation (NYSE:SXI) today announced that it has entered into a definitive agreement with Japan-based OKI Electric Industry Co., Ltd. (Tokyo Stock Exchange: 6703) to acquire its wholly owned subsidiary, OKI Sensor Device Corporation (“OKI Sensor Device”). Terms of the transaction were not disclosed. OKI Sensor Device is the world’s leading designer and supplier of magnetic reed switches. It recorded revenue of approximately ¥6.8 billion (approximately $56 million) for its most recently concluded fiscal year ended March 31, 2016 with approximately $12.9 million of this revenue comprised of sales to Standex Electronics. The acquisition, which is anticipated to close on or about March 31, 2017, subject to required regulatory approvals, should be accretive to earnings per share by $0.08-$0.11 in fiscal 2017 and $0.40-$0.44 in fiscal 2018, net of purchase accounting and acquisition costs.
Commenting on the planned transaction, Standex Chairman and CEO David Dunbar stated “OKI Sensor Device is recognized throughout the world for its production of robust, high quality magnetic reed switches, while our Standex Electronics business is known for its ability to deliver custom engineered sensor and electro-magnetic solutions to customers in the automotive, aerospace, medical, industrial and appliance markets. The acquisition enhances our access to important Asian markets. In addition, by leveraging combined engineering, manufacturing and sales capabilities, we will be able to provide customers with a world class suite of reed switches and related magnetic solutions while continuing to serve OKI Sensor Device’s diverse distribution channels. OKI Sensor Device has an experienced and capable management team, and we look forward to welcoming its employees and partners to Standex.”
“As an existing customer, we have long admired the engineering and quality of OKI Sensor Device’s products,” said Standex Electronics President John Meeks. “We already enjoy a strong long-term relationship with management which should greatly facilitate our ability to enhance product offerings and further our global reach.”
About OKI Sensor Device Corporation
Headquartered in Kofu
City, Japan, OKI Sensor Device Corporation is the world’s leading
designer and supplier of magnetic reed switches. Its products are
incorporated into a wide variety of sensing solutions for end use
customers primarily in the automotive and consumer electronics fields.
For additional information, visit the Company’s website at http://www.osdc.co.jp/en/index.shtml.
About OKI Electric Industry (OKI)
Founded in 1881, OKI
Electric Industry is Japan's leading telecommunications manufacturer in
the Info-telecom field. Headquartered in Tokyo, Japan, OKI provides
top-quality products, technologies, and solutions to customers through
its info-telecom systems and printer operations. Its various business
divisions function synergistically to bring to market exciting new
products and technologies that meet a wide range of customer needs in
various sectors. Visit OKI's global website at http://www.oki.com/.
About Standex
Standex
International Corporation is a multi-industry manufacturer in five
broad business segments: Food Service Equipment, Engineering
Technologies, Engraving, Electronics, and Hydraulics with operations in
the United States, Europe, Canada, Australia, Singapore, Mexico, Brazil,
Argentina, Turkey, South Africa, India and China. For additional
information, visit the Company's website at http://standex.com/.
Safe Harbor Language
Statements in this news release
include, or may be based upon, management's current expectations,
estimates and/or projections about Standex's markets and industries.
These statements are forward-looking statements within the meaning of
The Private Securities Litigation Reform Act of 1995. Actual results may
materially differ from those indicated by such forward-looking
statements as a result of certain risks, uncertainties and assumptions
that are difficult to predict. Among the factors that could cause actual
results to differ are the impact of implementation of government
regulations and programs affecting our businesses, unforeseen legal
judgments, fines or settlements, uncertainty in conditions in the
financial and banking markets, general domestic and international
economy including more specifically economic conditions in the oil and
gas market, the impact of foreign exchange, increases in raw material
costs, the ability to substitute less expensive alternative raw
materials, the heavy construction vehicle market, the ability to
continue to successfully implement productivity improvements, increase
market share, access new markets, introduce new products, enhance our
presence in strategic channels, the successful expansion and automation
of manufacturing capabilities and diversification efforts in emerging
markets, the ability to continue to achieve cost savings through lean
manufacturing, cost reduction activities, and low cost sourcing,
effective completion of plant consolidations, successful completion and
integration of acquisitions and the other factors discussed in the
Annual Report of Standex on Form 10-K for the fiscal year ending June
30, 2016, which is on file with the Securities and Exchange Commission,
and any subsequent periodic reports filed by the Company with the
Securities and Exchange Commission. In addition, any forward-looking
statements represent management's estimates only as of the day made and
should not be relied upon as representing management's estimates as of
any subsequent date. While the Company may elect to update
forward-looking statements at some point in the future, the Company and
management specifically disclaim any obligation to do so, even if
management's estimates change.
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Contacts:
Thomas DeByle, 603-893-9701
CFO
InvestorRelations@Standex.com