CTS Completes Ferroperm Piezoceramics Acquisition

Rhea-AI Summary

CTS Corporation (NYSE: CTS) has successfully completed its acquisition of Ferroperm Piezoceramics from Meggitt PLC for 525 million Danish Krone. This strategic move enhances CTS's portfolio in high-performance piezoceramic components, catering to demanding medical, industrial, and aerospace applications. Ferroperm's established presence in Europe and customer base aligns well with CTS's diversification strategy. With this acquisition, CTS anticipates growth acceleration and expects the deal to be accretive in 2023.

Positive

• Acquisition strengthens CTS's position in medical and aerospace markets.
• Ferroperm's technical expertise is expected to enhance CTS's product offerings.
• Expected to be accretive to earnings starting in 2023.

Negative

• None.

LISLE, Ill., June 30, 2022 (GLOBE NEWSWIRE) -- Today CTS Corporation (NYSE: CTS) completed the previously announced acquisition of Ferroperm Piezoceramics from Meggitt PLC (LSE: MGGT) for 525 million Danish Krone in cash, subject to usual net debt and working capital adjustments and other terms and conditions of the Definitive Share Purchase Agreement.  

Founded in 1952, Ferroperm specializes in the design and manufacture of high performance piezoceramic components for use in complex and demanding medical, industrial, and aerospace applications. The company is recognized for its high quality and innovative piezoceramic technology. Based in Kvistgaard, Denmark, Ferroperm has established a strong customer base across Europe and North America.  

“We are pleased to welcome the Ferroperm team to CTS,” said Kieran O’Sullivan, CEO of CTS Corporation. “The completion of this acquisition represents another step forward in our diversification strategy. Ferroperm’s presence in Europe and experience in medical therapeutic markets complement our capabilities. We look forward to leveraging the technical expertise of both teams to enhance our product offering and accelerate growth. We expect the acquisition to be accretive in 2023.”

CTS (NYSE: CTS) is a leading designer and manufacturer of products that Sense, Connect, and Move. The company manufactures sensors, actuators, and electronic components in North America, Europe, and Asia, and provides engineered products to customers in the aerospace/defense, industrial, medical, and transportation markets.

For more information on CTS Corporation, please visit www.ctscorp.com.

Investor Relations Contact
Ashish Agrawal
Chief Financial Officer

CTS Corporation
4925 Indiana Avenue
Lisle, IL  60532

E-mail: MediaRelations@ctscorp.com
Tel.:  +1 (630) 577-8814

FAQ

What is the value of CTS's acquisition of Ferroperm Piezoceramics?

The acquisition was completed for 525 million Danish Krone.

What markets does Ferroperm Piezoceramics serve?

Ferroperm specializes in medical, industrial, and aerospace applications.

What are the expected benefits of the acquisition for CTS?

CTS expects the acquisition to enhance product offerings and accelerate growth.

When does CTS expect the acquisition to be accretive?

CTS anticipates the acquisition will be accretive starting in 2023.