Methode Agrees to Acquire Pacific Insight CHICAGO,

New Post Public Reply Private Reply Replies (0) Message Board
News Desk 2018
45
Methode Agrees to Acquire Pacific Insight

CHICAGO, IL--(Marketwired - Aug 1, 2017) - Methode Electronics, Inc. ( NYSE : MEI ) ("Methode"), a global developer of custom engineered and application-specific products and solutions, announced that it has entered into a definitive agreement with Pacific Insight Electronics Corp. ( TSX : PIH ) ("Pacific Insight"), a global lighting, electronics and full-service solutions provider to the transportation industry, pursuant to which Methode will acquire all of the outstanding common shares of Pacific Insight in a cash transaction. Methode will fund the total consideration of approximately U.S.$114 million 1 with available cash and its existing credit facility. Methode expects the acquisition to be accretive to earnings in its current fiscal year ending April 28, 2018.

Pacific Insight is a global solutions provider offering design, development, manufacturing and delivery of lighting and electronic products and full service solutions to the automotive and commercial vehicle markets. Pacific Insight's vision is to offer advanced technologies including lighting and electronic solutions that create a better driving experience. The company's LED lighting systems and electronic modules are driving automotive innovation, as OEMs seek to differentiate their vehicles with advanced lighting technologies. A focus on design and manufacturing excellence, responsiveness and customer service has made Pacific Insight a preferred partner of choice for OEMs. Pacific Insight was founded in 1984 and has manufacturing locations in Fresnillo, Mexico, and Nelson, British Columbia, Canada, and has offices in Detroit, Michigan, and Vancouver, British Columbia. The company employs approximately 1,100 people across these locations. Trailing 12-month revenue was approximately U.S.$99 million as of March 31, 2017 1 .

Methode's President and CEO Don Duda said, "Pacific Insight's innovation and technology in LED based ambient and direct lighting will expand our presence within the automotive interior, as well as augment our efforts in overhead console and other areas. Additionally, because of Pacific Insight's reputation as an expert in lighting, we see the potential to bring Pacific Insight's technology and expertise to our non-automotive customers as well. Finally, the addition of Pacific Insight will advance our objective to pursue strategic acquisitions where we can leverage our core competencies and provide an attractive value proposition for our shareholders."

Pacific Insight's CEO Stuart Ross commented, "Methode is the ideal partner for us given the complementary nature of our products and expertise. Importantly, Methode's global manufacturing footprint will provide us the ability to meet our customers' requested expansion into Asia and Europe. As part of Methode, we will be uniquely positioned to accelerate our innovations, and at the same time, strengthen and scale operations in a strategic manner. The size and strength of Methode will provide additional opportunities for all our stakeholders, including employees, customers, suppliers and local communities that we would not have had on our own. For our shareholders, this transaction will create compelling value by providing them liquidity at an attractive valuation and premium to market in an all-cash transaction."

The purchase price represents a valuation multiple of 8.6 times Pacific Insight's adjusted EBITDA, excluding revenue and cost synergies, for the trailing 12 months ended March 31, 2017. Adjusted EBITDA is a non-GAAP measure defined as net earnings before interest, taxes, depreciation and amortization, adjusted for unusual, out-of-period, non-operating expenses, and an adjustment for development costs that would be expensed under U.S. GAAP.

The acquisition will be accomplished as a court-approved plan of arrangement under Canadian law and is subject to customary closing conditions, including shareholder approval. The transaction is expected to be completed in the second quarter of fiscal 2018.

Foros acted as financial adviser to Methode. Locke Lord LLP, Stikeman Elliott LLP and Jones Day served as counsel to Methode.

About Methode Methode ( NYSE : MEI ) is a global developer of custom engineered and application specific products and solutions with manufacturing, design and testing facilities in China, Egypt, Germany, India, Italy, Lebanon, Malta, Mexico, Singapore, Switzerland, the United Kingdom and the United States. We design, manufacture and market devices employing electrical, electronic, wireless, safety radio remote control, sensing and optical technologies to control and convey signals through sensors, interconnections and controls. Our business is managed on a segment basis, with those segments being Automotive, Interface, Power Products and Other. Our components are in the primary end markets of the automobile, computer, information processing and networking equipment, voice and data communication systems, consumer electronics, appliances, aerospace vehicles and industrial equipment industries. Further information can be found on Methode's website www.methode.com .

Forward-Looking Statements This press release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are subject to the safe harbor protection provided under the securities laws. 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. 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. Such factors may include, without limitation, the following: (1) dependence on a small number of large customers, including two large automotive customers; (2) dependence on the automotive, appliance, computer and communications industries; (3) investment in programs prior to the recognition of revenue; (4) timing, quality and cost of new program launches; (5) ability to withstand price pressure, including pricing concessions; (6) currency fluctuations; (7) customary risks related to conducting global operations; (8) ability to successfully market and sell Dabir surfaces; (9) dependence on our supply chain; (10) income tax rate fluctuations; (11) dependence on the availability and price of raw materials; (12) fluctuations in our gross margins; (13) location of a significant amount of cash outside of the U.S.; (14) the effect of a catastrophic event or significant business interruption at one of our facilities; (15) ability to keep pace with rapid technological changes; (16) a breach of our information technology systems; (17) ability to avoid design or manufacturing defects; (18) ability to compete effectively; (19) ability to protect our intellectual property; (20) ability to successfully benefit from acquisitions and divestitures; (21) the recognition of impairment charges; and (22) costs and expense due to regulations regarding conflict minerals.

Certain statements contained in this press release about the pending acquisition of Pacific Insight, its effects, and Methode's outlook, constitute "forward-looking statements." Forward-looking statements can usually be identified by the use of words such as "aim," "anticipate," "believe," "continue," "could," "estimate," "evolve," "expect," "forecast," "intend," "looking ahead," "may," "opinion," "plan," "possible," "potential," "project," "should," "will" and other expressions which indicate future results, events or trends. Such statements reflect management's current expectations or beliefs, and are subject to risks and uncertainties that could cause actual results or events to vary from stated expectations, which variations could be material and adverse. Factors that could produce such a variation include, but are not limited to, the following: (1) the risk that the acquisition will not be consummated within the expected time period or at all; (2) the acquisition may involve unexpected costs, liabilities or delays; (3) we may be unable to achieve expected synergies and operating efficiencies from the acquisition within the expected time frames or at all; (4) the integration of Pacific Insight into our business may be unsuccessful, or more difficult, time consuming or costly than expected; (5) revenues following the acquisition may be lower than expected; (6) operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) may be greater than expected following the acquisition; and (7) uncertainties surrounding the acquisition. Our forward-looking statements speak only as of the time made, and we assume no obligation to publicly update any such statements. Additional information concerning these and other factors that could cause actual results and events to differ materially from Methode's current expectations are contained in Methode's Form 10-K for the year ended April 29, 2017.

1 Based on July 31, 2017 spot rate

For Methode: Kristine Walczak Dresner Corporate Services 312-780-7205 kwalczak@dresnerco.com

Scroll down for more posts ▼

Top 10 Most Recent News Articles

Orthopedic Expert Highlighting Midwest Pain Access Gaps

Updated Category News Views 5

Over in the vast sprawl of rolling plains and prairie winds, folks in the Upper Midwest are grappling with an ironic reality. As technological advancements blaze trails, people suffering from vertebrogenic pain are finding themselves up against a wall of limited access to specialized care. We’ve got Dr. James T. Brunz, the man of the hour, one of only about 15 Intracept...

Continue Reading
Perk's U.S. Expansion: A Bold Move in Spend Control

Updated Category News Views 4

Perk Aims for U.S. Growth: Will It Pay Off? Amidst the cacophony of market chatter, Perk's announcement to bring its spend platform stateside is echoing louder than usual. This move is not just another step in its expansion but rather a leap considering the competition and market needs. In Europe, where they've already captured a chunk of the market with their Travel and...

Continue Reading
TWP & Commbi Unveil Exclusive Pony Clog Collaboration

Updated Category News Views 4

A Fusion of Fashion and Functionality Walk down the streets of New York or hustle your way through an airport without worrying about your footwear weighing you down. That's the promise coming from the fresh alliance between TWP and Commbi with their new Pony Clog Collaboration. A blend of high fashion and everyday utility, these clogs aren't just keeping up with the...

Continue Reading
Lumicell Expands LumiSystem in Breast Cancer Surgery

Updated Category News Views 6

Innovation in Breast Cancer Surgery: A Real-World Game Changer? You’ve got your flashlight guiding a scared child through the dark, and in the healthcare world, Lumicell is promising to do just that for surgeons navigating the tricky maze of breast cancer surgery. Their LumiSystem is making waves in breast-conserving surgery—new kid on the block with a real chance at...

Continue Reading
MSP360 Unveils Free Proxmox Backup: A Game Changer?

Updated Category News Views 7

Backing Up: New Paths for Proxmox Users Ever get that feeling of uncovering something truly worth its weight in gold? That's what MSP360 just dropped on us, with their new backup solution for Proxmox that won’t cost you a dime upfront. They're calling it the Community Edition, and it’s not only free, but it comes with all the bells and whistles for protecting those...

Continue Reading
RxWellness Hits Inc. 5000—Four Straight Wins Impress

Updated Category News Views 4

RxWellness Spine & Health Continues to Impress Well, not many companies can boast about snagging a spot on the Inc. 5000 list four years in a row, but here we are with RxWellness Spine & Health doing just that. Sitting pretty at No. 1,230 nationally—and that's no small feat—these folks are making waves in the healthcare industry. Securing the No. 135 spot in...

Continue Reading
Inovonics Duress Card Enhances Safety for K-12 and Beyond

Updated Category News Views 5

A New Dawn for Safety in Schools and More It's about time we talk about something more substantial than just beefing up security cameras or tightening door locks. Real-world problems require nimble solutions, and that's where Status Solutions steps in with the Inovonics Duress Card. It's not just another gadget; it's a lightweight, wrist-mounted lifeline designed to say,...

Continue Reading
Alcott HR's Sales Strategy Gets a Boost with New Hire

Updated Category News Views 8

Alcott HR Ramps Up Sales Firepower Now here's something fresh from the world of human resources outsourcing—Alcott HR has grabbed a new ace for their sales team. Eldin Radoncic is the name you'll want to remember, folks, because he's diving headfirst into the Director of Sales seat at this IRS Certified and ESAC Accredited player based out in good old Farmingdale, New...

Continue Reading
FC2 Condom Educates NYC on Health and Wellness

Updated Category News Views 9

Union Square Becomes a Hub of Interactivity The heart of NYC pulsed with purpose as FC2 Female Condom set up shop in Union Square, using the iconic location as a stage for a different kind of celebration. Clear Future, the manufacturer behind FC2, marked Global Female Condom Day with an event unlike any other. It wasn't just about the product—it was a call to educate...

Continue Reading
Postal Connections Expands with New Hillsboro Opening

Updated Category News Views 5

Expanding Horizons in Hillsboro In the world of postal and office services, Annex Brands, Inc. is making headlines by launching yet another Postal Connections spot, this time planting its flag in the tech-centric town of Hillsboro, Oregon. Spearheaded by Jason Rautenkranz, this expansion is more than just another dot on a map—it's a strategic push into one of the...

Continue Reading

Top 5 Most Recently Viewed Articles

Supermicro Launches High-Performance Servers for AI and HPC

Updated Category News Views 248

Supermicro Unveils High-Performance Servers Optimized for Advanced Workloads Supermicro, Inc. (NASDAQ: SMCI), a leader in IT solutions, has initiated the shipment of its upgraded servers equipped with the latest Intel Xeon 6900 series processors. These systems are tailored for demanding applications such as artificial intelligence (AI), high-performance computing (HPC),...

Continue Reading
Fortinet, Inc.: Opportunities for Investors Facing Losses

Updated Category News Views 172

Understanding the Investor Class Action Lawsuit Opportunity Fortinet, Inc. (NASDAQ: FTNT) presents a significant opportunity for investors facing losses due to its ongoing class action lawsuit. Individuals who purchased Fortinet's common stock during a specific period have a chance to become lead plaintiffs in this financial recovery effort. This lawsuit could help...

Continue Reading
Insights from CARFAX Canada's 2024 Comprehensive Vehicle Report

Updated Category News Views 369

Insights from CARFAX Canada's 2024 Comprehensive Vehicle Report CARFAX Canada has unveiled its eagerly awaited Year in Rear View 2024 report, providing vital insights drawn from millions of Vehicle History Reports completed throughout the past year. Leveraging an extensive network of billions of data records from reliable sources across North America, this...

Continue Reading
Alexander Dennis Develops New Strategy for UK Manufacturing

Updated Category News Views 135

Alexander Dennis Reassesses UK Manufacturing Operations In a recent announcement, NFI Group Inc. (TSX: NFI) has revealed that its subsidiary, Alexander Dennis Limited, is embarking on a new consultation regarding its UK manufacturing strategy. This pivotal move comes as a response to changing market conditions and aims to optimize operations for future success. The...

Continue Reading
Stryve Foods Achieves Significant Growth in Q3 2024 Results

Updated Category News Views 220

Stryve Foods Reports Impressive Q3 2024 Growth Stryve Foods, Inc. (“Stryve” or “the Company”) (NASDAQ: SNAX) has recently announced its financial performance for the fiscal third quarter. The health-focused snacks company is delighted to report a remarkable growth in net sales, reflecting a significant 36.4% increase year-over-year. Stryve continues to solidify...

Continue Reading