STANDEX ENTERS INTO A DEFINITIVE AGREEMENT TO ACQUIRE SANYU SWITCH CO., LTD.

Rhea-AI Summary

Standex International Corporation is set to acquire Sanyu Switch Co., Ltd., a Japanese-based company, in a definitive agreement. The transaction is expected to close before January 31, 2024, and Standex anticipates the acquisition to be accretive to its earnings and achieve a double-digit return on invested capital in the first year. The acquisition will be funded by Standex's existing cash balance. Sanyu's customer base and product line are complementary to Standex's business, providing opportunities for expanded key account relationships and cross-selling. The acquisition will also enhance Standex's global footprint and strengthen its engineering and manufacturing capabilities.

Positive

• The acquisition of Sanyu Switch Co., Ltd. is expected to be accretive to Standex International Corporation's earnings in the first year of ownership.
• Standex anticipates achieving a double-digit return on invested capital through the acquisition of Sanyu Switch Co., Ltd.
• Sanyu's customer base and product line are highly complementary to Standex's existing business, offering potential for expanded key account relationships and cross-selling opportunities.
• Standex intends to fund the acquisition using its existing cash balance.
• The acquisition will strengthen Standex's global footprint and enhance its engineering and manufacturing capabilities.

Negative

• None.

SALEM, N.H., Nov. 1, 2023 /PRNewswire/ -- Standex International Corporation (NYSE:SXI) today announced that it has entered into a definitive agreement, through its subsidiary Standex Electronics Japan Corporation, to acquire privately-held, Japanese-based Sanyu Switch Co., Ltd.. The transaction is expected to close before January 31, 2024, subject to required regulatory approvals. In its first year of ownership, the Company expects the acquisition to be accretive to its earnings and to achieve a double-digit return on invested capital. Standex intends to fund the acquisition from its existing cash balance.

"We are very pleased to be acquiring Sanyu which strengthens Electronics' relay product line and technology. Sanyu's customer base and product line are highly complementary to our existing business with the potential to further expand key account relationships and capitalize on cross-selling opportunities. Sanyu brings complementary engineering and manufacturing capabilities and will strengthen our global footprint," commented President and Chief Executive Officer David Dunbar.

Sanyu Switch Co., Ltd. designs and manufactures reed relays, test sockets, testing systems for semi-conductor and other electronics manufacturing, and other switching applications.

Commenting on the transaction, Akira Unoki, Representative Director of Sanyu Switch Co., Ltd., stated, "We have established a foundation centered on high-quality products and an integrated culture.  Joining a global leader like Standex allows us to continue building on the legacy of the last 50 years. Standex's ownership offers us the opportunity to expand our geographic reach, gain additional engineering expertise, and add complementary product offerings for our customer."

"With today's announcement, we are strengthening the competitive advantage of our highest growth product lines in our Electronics business by adding breadth to our product portfolio across attractive and growing global end markets. The combination of Sanyu with our existing Electronics business continues Standex's portfolio strategy of focusing our higher-margin business segments in faster-growing markets. We look forward to welcoming the entire Sanyu team to our company," concluded Dunbar.

About Standex

Standex International Corporation is a global multi-industry manufacturer in five broad business segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions with operations in the United States, Europe, Canada, Japan, Singapore, Mexico, Turkey, South Africa, India, and China.  For additional information, visit the Company's website standex.com.

About Sanyu Switch Co., Ltd.

With corporate headquarters in Tokyo, Japan, Sanyu Switch Co., Ltd. designs and manufactures reed relays, test sockets, testing systems for semi-conductor and other electronics manufacturing, and other switching applications. The Company's primary manufacturing facility is in Kumamoto, Japan. For additional information, visit the Company's website at http://www.sanyu.co.jp.

View original content to download multimedia:https://www.prnewswire.com/news-releases/standex-enters-into-a-definitive-agreement-to-acquire-sanyu-switch-co-ltd-301974776.html

SOURCE Standex International Corporation

FAQ

What is the name of the company acquiring Sanyu Switch Co., Ltd.?

Standex International Corporation is acquiring Sanyu Switch Co., Ltd.

When is the expected closing date for the acquisition?

The transaction is expected to close before January 31, 2024.

How does Standex plan to fund the acquisition?

Standex intends to fund the acquisition from its existing cash balance.

What are the expected benefits of the acquisition for Standex?

The acquisition is expected to provide opportunities for expanded key account relationships, cross-selling, and enhance Standex's global footprint and engineering and manufacturing capabilities.

What type of products does Sanyu Switch Co., Ltd. design and manufacture?

Sanyu Switch Co., Ltd. designs and manufactures reed relays, test sockets, testing systems for semiconductor and other electronics manufacturing, and other switching applications.