CTS Corporation (NYSE:CTS) today announced the acquisition of D&R
Technology (D&R), a privately-held company with annual sales of
approximately $50 million. D&R is a leading manufacturer of custom
designed sensors, switches and electromechanical assemblies primarily
serving the automotive light-vehicle market. CTS acquired D&R for a cash
purchase price of approximately $63.5 million. Management expects the
transaction to be accretive to CTS’ earnings in the first year.
The synergistic acquisition significantly expands CTS’ strategic
automotive sensor product platform with new customers and a broader
product portfolio. The acquisition will also further diversify CTS’
Components and Sensors segment and bring new growth opportunities from
sensor applications for safety systems and vehicle chassis management.
Additionally, D&R brings strong sensor design and development
engineering capabilities to complement CTS’ world-class engineering team.
D&R, founded in 1998, operates Lean Manufacturing facilities in Carol
Stream, Illinois and Juarez, Mexico, with approximately 400 employees.
D&R specializes in building advanced technology products that provide
industry-leading and application-specific solutions. Key products
include non-contacting chassis height position sensors, seat belt
tension sensors, seat belt buckle switches and anti-lock braking system
(ABS) wheel speed sensors. Newer products currently growing include seat
track position sensors and current sensors for electric and hybrid
vehicles. D&R has been widely recognized by customers for quality
performance, including Flawless Launch Awards.
Vinod Khilnani, CTS Chairman and Chief Executive Officer, stated, “This
is a significant strategic acquisition for CTS. We are delighted to
welcome D&R into the CTS family. It is an excellent fit and a
synergistic addition to our faster growing Components and Sensors
segment, bringing exciting new growth opportunities.”
About CTS Automotive Products
CTS Automotive Products is a global leader in the design, test and
manufacture of automotive sensors, accelerator pedal modules, actuators
and subsystems. Recognized for its customer responsiveness and expertise
in high-volume automotive packaging, CTS Automotive Products is focused
on delivering value-added products and services to its expanding
worldwide customer base. The Company manufactures sensor and actuator
products in Elkhart, Indiana; Toronto, Canada; Glasgow, Scotland;
Ostrava, Czech Republic; Matamoros, Mexico; Kaohsiung, Taiwan; and
Zhongshan, China. The D&R acquisition adds operations in Carol Stream,
Illinois and Juarez, Mexico.
About CTS
CTS is a leading designer and manufacturer of electronic components and
sensors and a provider of electronics manufacturing services (EMS) to
OEMs in the automotive, communications, medical, defense and aerospace,
industrial and computer markets. CTS manufactures products in North
America, Europe and Asia. CTS' stock is traded on the NYSE under the
ticker symbol "CTS.” To find out more, visit the CTS Web site at www.ctscorp.com.
Safe Harbor Statement
This press release contains statements that are, or may be deemed to be,
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include,
but are not limited to, any financial or other guidance, statements that
reflect our current expectations concerning future results and events
and any other statements that are not based solely on historical fact.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof and
are based on various assumptions as to future events, the occurrence of
which necessarily are subject to uncertainties. These forward-looking
statements are made subject to risks, uncertainties and other factors,
which could cause our actual results, performance or achievements to
differ materially from those presented in the forward-looking
statements, including, without limitation: changes in the economy
generally and in respect to the businesses in which CTS operates;
unanticipated issues in integrating acquisitions; rapid technological
change; general market conditions in the automotive, communications and
computer industries, as well as conditions in the industrial, defense
and aerospace and medical markets; reliance on key customers;
unanticipated natural or other events such as the Japan earthquake and
floods in Thailand; the ability to protect our intellectual property;
pricing pressures and demand for our products; and risks associated with
our international operations, including trade and tariff barriers,
exchange rates and political and geographical risks. For more detailed
information on the risks and uncertainties associated with CTS’
business, see the reports CTS files with the Securities and Exchange
Commission available at http://www.ctscorp.com/investor_relations/investor.htm.
CTS undertakes no obligation to publicly update its forward-looking
statements to reflect new information or events or circumstances that
arise after the date hereof, including market or industry changes.
