Methode Completes Tender Offer for Shares of Nordic Lights Group Corporation
Methode Electronics, Inc. (NYSE: MEI) announced the successful acquisition of 80.7% of Nordic Lights Group Corporation, following a public tender offer that became unconditional. The company settled a total of EUR 106.5 million for 16,908,155 shares at EUR 6.30 each. Methode plans to acquire all remaining shares and has intentions for Nordic Lights to be delisted from Nasdaq First North Growth Market Finland. This acquisition is expected to be accretive to earnings and free cash flow in fiscal 2024, factoring in amortization and interest expenses. Nordic Lights is recognized for its high-quality lighting solutions tailored for heavy-duty equipment across various sectors, including mining and construction, complementing Methode's existing product lines. CEO Donald W. Duda emphasized the strategic fit of Nordic Lights in broadening their market reach.
- Acquisition of 80.7% of Nordic Lights enhances Methode's LED lighting portfolio.
- Transaction valued at EUR 106.5 million, funded through cash and debt financing.
- Expected to be accretive to earnings and free cash flow in fiscal 2024.
- None.
CHICAGO, April 20, 2023 (GLOBE NEWSWIRE) -- Methode Electronics, Inc. (NYSE: MEI), a leading global supplier of custom-engineered solutions for user interface, LED lighting system and power distribution applications, announced that, further to the press release on April 19, 2023 declaring its public tender offer for all the outstanding shares in Nordic Lights Group Corporation unconditional, it has today settled the consideration due to tendering shareholders and acquired 80.7 percent of the share capital of Nordic Lights. Methode intends to acquire all of the outstanding shares of Nordic Lights and apply for its delisting from Nasdaq First North Growth Market Finland.
Methode funded the total consideration of EUR 106,521,376.50 payable to the tendering shareholders (such aggregate amount comprised of EUR 6.30 consideration for each of the 16,908,155 shares tendered) with a combination of cash on hand and debt financing under its existing credit facility. Excluding pre-tax costs related to the transaction, Methode expects the acquisition to be accretive to earnings and free cash flow on a per share basis in fiscal 2024 inclusive of estimated amortization, purchase accounting adjustments and interest expense and prior to any potential synergies.
Nordic Lights is a premium provider of high-quality lighting solutions for heavy-duty equipment that focuses on five end-user segments: mining, construction, forestry, agriculture and material handling. They manufacture lights for three main application areas: work lights, driving lights and signal lights.
President and Chief Executive Officer Donald W. Duda said, “Nordic Lights is highly complementary to our existing LED lighting and industrial radio remote control businesses and advances our focus on engineered solutions for OEMs, on industrial and non-auto transportation markets, and on customer and geographic diversity. We welcome the talented Nordic Lights team and look forward to further growing and strengthening the business.”
Moelis & Company LLC acted as exclusive financial advisor to Methode. Wachtell, Lipton, Rosen & Katz, together with Hannes Snellman Attorneys Ltd served as Methode’s outside legal co-counsel. Hill+Knowlton Strategies served as Methode’s communications advisor.
About Methode Electronics, Inc.
Methode Electronics, Inc. (NYSE: MEI) is a leading global supplier of custom-engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East and Asia. We design, engineer, and produce mechatronic products for OEMs utilizing our broad range of technologies for user interface, LED lighting system, power distribution and sensor applications.
Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus and rail), cloud computing infrastructure, construction equipment, consumer appliance, and medical devices. Our business is managed on a segment basis, with those segments being Automotive, Industrial, Interface and Medical.
Forward-Looking Statements
This press release contains statements that, to the extent they are not historical facts, constitute “forward-looking statements”. These forward-looking statements include expectations regarding future business strategies, growth plans, revenues and operating performance that are not historical information and speak only as of the date of this release. In some instances, they can be identified by the use of forward-looking terminology, including the terms believes”, “intends”, “may”, “will” or “should” or, in each case, their negative or variations on comparable terminology. By their very nature, forward-looking statements involve inherent risks, uncertainties and assumptions, both general and specific, and risks exist that the predictions, forecasts, projections and other forward-looking statements will not be achieved. Given these risks, uncertainties and assumptions, investors are cautioned not to place undue reliance on such forward-looking statements. These forward looking statements are subject to the safe harbor protection provided under the securities laws and Methode undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in Methode's expectations on a quarterly basis or otherwise. The forward-looking statements in this press release involve a number of risks and uncertainties including, without limitation, as to the success of the Nordic Lights acquisition. The factors that could cause actual results to differ materially from our expectations are detailed in Methode's filings with the Securities and Exchange Commission, such as our annual and quarterly reports.
For Methode Electronics, Inc.
Robert K. Cherry
Vice President Investor Relations
rcherry@methode.com
708-457-4030
FAQ
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