EDEN PRAIRIE, Minn. -- MTS Systems Corporation, a global supplier of high-performance test systems and position sensors, announced that it has acquired 100% of the shares of Roehrig Engineering, Inc. for approximately $15 million. The purchase price may increase by up to $2 million if certain sales targets are achieved. The acquisition closed on June 17, 2014. For fiscal year 2015, REI's revenue is expected to be $12 to 14 million and EBITDA is expected to be over $2 million.
Dr. Michael Jost, Senior Vice President and General Manager of MTS Test, commented, "REI's innovative electric technologies and products are highly complementary to our servo hydraulic technologies and expertise. The combination of our advanced software and controls, global sales organization, and service network with REI's proven electrically actuated test systems are an ideal fit. Together, we have unmatched technical capability and product offerings to serve the global ground vehicles market."
"REI is very excited about joining MTS, a world class test company," said Kurt Roehrig, CEO of REI. "Our entrepreneurial spirit and customer-focused business approach are just two of the many attributes that make us a good cultural fit. Together, we will create significant advancements in testing technologies." Mr. Roehrig founded REI in 1988 with the development of unique expertise in shock absorber testing to serve the requirements of NASCAR racing teams. In the years since, applications for this technology have expanded well beyond racing to broadly encompass both laboratory and factory test environments in the global ground vehicle testing market. REI is based in Lexington, North Carolina.
"We are very excited about the addition of REI to the company," said Dr. Jeffrey Graves, President and Chief Executive Officer of MTS. "Their electric and electromagnetic actuation technology is well-aligned with the energy conservation and environmental megatrends, specifically the need for clean, low cost, energy efficient testing solutions." Dr. Graves continued, "We are actively developing and looking for new technologies that our customers value as they move rapidly to address these megatrends with new vehicle designs. We will continue to make this type of investment in both our Test and Sensor businesses to expand our technology base and supplement our organic growth initiatives, which are designed to deliver sustainable annual double-digit revenue growth."
Additional information on MTS can be found at http://www.mts.com