Eltek Secures a $4.2 Million Investment from Nistec Ltd.
- Eltek will sell 3,532,655 ordinary shares to Nistec for $4.2 million
- Nistec will also purchase all of the shares held by Eltek's majority holder,
Mr. Yossi Maiman, and Nistec will become Eltek's majority shareholder (50.5%)
PETACH-TIKVA, Israel, Aug. 19, 2013
PETACH-TIKVA, Israel, Aug. 19, 2013 /PRNewswire/ -- Eltek Ltd., (NASDAQ:
ELTK), the leading Israeli manufacturer of advanced Flex-Rigid circuitry
solutions, announced today that it has entered into a $4.2 million investment
agreement with Nistec Ltd. ("Nistec"), a leading provider of Electronic
Manufacturing Services ("EMS") and design services, to sell Nistec 3,532,655
ordinary shares at $1.19 per share.
Nistec will also acquire all of the holdings of Eltek's major shareholder, Mr.
Yossi Maiman (24.1%), for $2.3 million, or $1.45 per share. Upon completion of
the transactions, Nistec will hold the majority of Eltek's issued share
The investment agreement and certain ancillary agreements are subject to
approval at a shareholder meeting scheduled to take place within 60 days.
Nistec is a private company, owned by Mr. Yitzhak Nissan, and is involved in
the EMS and the design services business. Founded in 1985, Nistec provides a
one-stop-shop solution for electronics outsourcing. Nistec's comprehensive
line of services starts with NPI (new product introduction)through printed
circuit board ("PCB") design and then PCB assembly, providing a full turn-key
Erez Meltzer, Chairman of the Board of Directors of Eltek, who led the
investment transaction and the sale of Mr. Maiman's holdings in the Company
commented, "After 25 years of being the controlling shareholder of Eltek, Mr.
Maiman decided to sell his holdings in the Company to a new owner with
strategic ties to the Company's business. Nistec's investment in Eltek will
enable Eltek to continue to grow and strengthen its leading position in the
high-end PCB industry and expand into new niche markets within the industry.
Eltek has presented nice profitability in the last nine quarters and I am
confident that it will continue on this track in the future."
Arieh Reichart, President and Chief Executive Officer of Eltek commented, "I
would like to thank Mr. Maiman for his long relationship with the Company,
supporting our 10 fold growth since he first acquired shares in Eltek, and
helping in its positioning at the very front of the worldwide Flex-Rigid PCB
"We congratulate and welcome Nistec following its decision to significantly
invest in Eltek. This investment is an important validation of our vision and
achievements and will support our long-term growth plans. For three
consecutive quarters Eltek has seen growing demand from its current customer
base, and production capacity constraints prevented the full exploitation of
this potential. This investment will enable Eltek to fully realize such growth
potential as well as other opportunities in the diverse markets we serve," Mr.
Yitzhak Nissan, CEO and owner of Nistec commented, "Nistec is a well-known and
highly regarded player in the PCB design and EMS industry for various
electronics segments in Israel. Investing in Eltek adds an important link in
the chain to our group, combining the design and assembly with the production
of PCBs. Our joining forces with Eltek will ensure our ability to deliver a
full solution for our customers' needs."
"I know Eltek for many years, recognizing its know-how and expertise in the
manufacture of PCBs. Eltek has significant experience in supporting major
customers worldwide in the defense, aerospace and medical industries. I
believe this investment will greatly support Eltek's growth strategy in its
existing markets while allowing it to enter into new markets. I am excited
about the opportunity to develop the potential leverage hidden in joining
forces and look forward to working together with Eltek's management, with the
ultimate goal of providing more value to our customers and shareholders."
About the Eltek Ltd.
Eltek is Israel's leading manufacturer of printed circuit boards, the core
circuitry of most electronic devices. It specializes in the complex high-end
of PCB manufacturing, i.e., HDI, multilayered and flex-rigid boards. Eltek's
technologically advanced circuitry solutions are used in today's increasingly
sophisticated and compact electronic products. For more information, visit
Eltek's web site at www.eltekglobal.com.
About the Nistec Ltd.
Nistec is a leader in the delivery of innovative electronics manufacturing &
design services. Founded in 1985, Nistec provides one-stop-shop solutions for
electronics outsourcing. Nistec's comprehensive line of services starts with
NPI (new product introduction)and continues through PCB layout design and
board assembly, all the way to full turn-key solutions. Nistec's team,
technology and work process reflect its commitment to excellence, which
guarantees its customer's a competitive edge in manufacturing performance,
quality and cost. With three manufacturing plants in Israel and460 skilled
employees, Nistec serves more than 300 customers in diverse industries such as
telecommunications, RF, medical, defense and aerospace. Nistec's unique suite
of solutions spans the entire product lifecycle – from design, manufacturing
and systems integration, to order fulfillment and after-market services. For
more information, visit Nistec's web site at www.nistec.com
V.P. Finance & CFO
firstname.lastname@example.org | www.eltekglobal.com
Tel: +972 3 939 5023 | Fax: +972 3 934 2584 |
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