Spokane, Washington-based Key Tronic Corp. closed on a deal Wednesday to buy CDR Manufacturing, otherwise known as Ayrshire Electronics, for $46.9 million in cash.
“Ayrshire Electronics has been a great partner and growing employer in Corinth,” said Gary Chandler, president of The Alliance in Corinth, the economic development group for the county and city.
“We have been aware of the ongoing discussion between Key Tronic and Ayrshire for some time. In fact, MDA and our local team Printhave been in contact with parties from both companies in recent weeks. We believe our Corinth facility’s track record of success and expansion bode well for sustainability and potential future growth. We look forward to working with the KeyTronic team moving forward.”
Key Tronic announced in July its intent to buy CDR/Ayrshire.
CDR has annual revenue of about $120 million and provides printed circuit board assembly and other electronic management services (EMS) to customers around the world. It operates manufacturing facilities in Minnesota, Arkansas, Mississippi, Kentucky and Mexico.
“We’re excited to add Ayrshire’s excellent people to the KeytronicEMS family and bring the combined strengths of the two companies to our customers,” said Craig Gates, President and CEO of KeytronicEMS. “We expect the combination will create more than the sum of its parts. By joining Ayrshire’s great manufacturing operations and customer relationships with our offshore footprint, engineering, plastic molding, metal forming and final product assembly capabilities, we will provide an exceptionally strong array of services for both current and prospective customers.”
“The Ayrshire team is looking forward to becoming a part of KeytronicEMS,” said Brian Porter, Chief Operating Officer of Ayrshire. “The strengths of the two companies are very complimentary. Both companies have built their businesses on quality-focused cultures and on long-term, trusted customer relationships. Together, we can offer valuable new capabilities to our respective customers.”
Key Tronic is a leading contract manufacturer offering design and manufacturing services from its facilities in the U.S., Mexico and China. The company provide customers full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing and worldwide distribution.
Key Tronic’s sales for fiscal 2014 was $305.4 million, down from $361 million for fiscal 2013. Net income fell to $7.6 million from $12.6 million