ELKHART, IN /BUSINESS WIRE/ -- CTS Corp. announced the acquisition of Orion Manufacturing Inc., a privately held company, for approximately $10 million in cash. Under the terms of the agreement, CTS may pay a contingent earn out of up to $1.75 million in cash, based on the achievement of certain financial targets in 2008 and 2009. Orion is a contract electronics manufacturer based in San Jose, CA, providing turnkey electronics manufacturing services to customers in the defense and aerospace, industrial, and medical markets. Full year 2007 sales were approximately $27 million. CTS expects the transaction to be accretive in year one.
The acquisition combines Orion's capabilities, with CTS' Electronics Manufacturing Solutions (EMS) business headquartered in Moorpark, CA. CTS expects to achieve significant synergies by combining the Orion operation with the CTS operation in Santa Clara, CA.
Commenting on the acquisition, Vinod M. Khilnani, CTS President and Chief Executive Officer said, "Orion Manufacturing is a well respected, highly focused contract manufacturer with a strong customer base and excellent service capabilities, specializing in low-volume, high-mix assemblies. Orion has built a solid track record of providing competitive, on-time quality manufacturing services. Its business model complements CTS' EMS business and enhances our ability to add value in our target markets."
CTS Corp. is a leading designer and manufacturer of electronic components and sensors and a provider of EMS to OEMs in the automotive, computer, communications, medical, defense and aerospace, and industrial markets. CTS manufactures products in North America, Europe, and Asia.