Key Tronic Corporation to Acquire Sabre Manufacturing
Provides Sheet Metal Fabrication Capabilities and Expands Customer Base
SPOKANE VALLEY, Wash., May 28, 2013 (GLOBE NEWSWIRE) -- Key Tronic Corporation
(Nasdaq:KTCC), a provider of electronic manufacturing services (EMS), today
announced that it intends to purchase the assets of Sabre Manufacturing for
approximately $5.1 million in cash.
With annual revenue of over $7.0 million and approximately 90 employees, Sabre
is a sheet metal fabrication company that operates a 66,000 square foot
facility near the Key Tronic campus in Juarez, Mexico.
"We're very pleased to announce our plans to acquire Sabre, which enables us
to offer metal fabrication directly to our customers, in combination with our
plastic molding, PCB assembly, complete product assembly, design engineering
and testing engineering services," said Craig Gates, President and Chief
Executive Officer. "This acquisition furthers our strategic focus on providing
all the EMS services available from a much larger tier I company, while still
bringing the flexibility and high customer service levels of a tier II
supplier. We expect a rapid integration of Sabre and have already seen
significant interest in our expanded capabilities across both of our customer
The purchase will be funded by Key Tronic's available cash and bank credit
line. The transaction is anticipated to close in July and to be immediately
accretive to earnings.
About Key Tronic
Key Tronic is a leading contract manufacturer offering value-added design and
manufacturing services from its facilities in the United States, Mexico and
China. The Company provides its customers full engineering services, materials
management, worldwide manufacturing facilities, assembly services, in-house
testing, and worldwide distribution. Its customers include some of the world's
leading original equipment manufacturers. For more information about Key
Tronic visit: www.keytronic.com.
Some of the statements in this press release are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include all passages containing verbs such as
'aims, anticipates, believes, estimates, expects, hopes, intends, plans,
predicts, projects or targets' or nouns corresponding to such verbs.
Forward-looking statements also include other passages that are primarily
relevant to expected future events or that can only be fully evaluated by
events that will occur in the future. Forward-looking statements in this
release include, without limitation, the Company's statements regarding its
expectations with respect to its intended acquisition of Sabre Manufacturing
and its impact on future earnings. There are many factors, risks and
uncertainties that could cause actual results to differ materially from those
predicted or projected in forward-looking statements, including but not
limited to the future of the global economic environment and its impact on our
customers and suppliers, the availability of parts from the supply chain, the
accuracy of customers' forecasts; success of customers' programs; timing of
new programs; success of new-product introductions; acquisitions or
divestitures of operations or facilities; technology advances; changes in
pricing policies by the Company, its competitors, customers or suppliers; and
the other risks and uncertainties detailed from time to time in the Company's
CONTACT: Ron Klawitter
Chief Financial Officer
Key Tronic Corporation
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