Vishay Precision Group, Inc. (NYSE: VPG) ("VPG" or the “Company”), a leading producer of precision sensors and systems, based on its resistive foil technology, today announced the signing of a definitive agreement to acquire the assets of George Kelk Corporation (“KELK”), of Toronto Canada, a privately held company. The acquisition is expected to close by January 31, 2013, subject to the satisfaction of customary conditions.
KELK is a designer and manufacturer of highly accurate, high technology mission critical electronic measurement and control equipment used by metals rolling mills and mining applications throughout the world.
Commenting on the acquisition, Marc Zandman, Chairman of the Board of VPG said, “This is the first acquisition by VPG and we are excited to welcome the KELK family into VPG. This acquisition follows our corporate growth strategy and allows us to expand our existing product portfolio of complementary products that use resistive foil technology.”
Commenting on the acquisition, Ziv Shoshani, Chief Executive Officer of VPG, said, “KELK is an excellent fit with VPG’s Weighing and Control Systems segment. Their products are complementary to our process weighing market sector for weighing and force measurement applications in the steel industry, where we are present with our two leading brand names of Nobel Weighing Systems and BLH. KELK is a worldwide leader in optical and roll force measurement solutions, which are based on VPG’s resistive foil technology.”
Ziv Shoshani also stated, “Beyond the complementary products, KELK will widen and strengthen our geographic footprint in the steel market, in which VPG is mainly in Europe while KELK is strong in Asia, Latin America and North America and certain emerging markets. This will enable us to achieve synergies in the steel industry on a worldwide basis.”
The purchase price for this business is approximately $50 million Canadian, subject to customary post-closing adjustments. VPG will finance the acquisition through a combination of cash on hand and third party borrowings. KELK experienced an average of approximately $30.0 million Canadian in annual net sales and an average of approximately $8.0 million Canadian in annual EBITDA over the last two years. The Company looks forward to adding an operation with this successful track record to its business for the future.