Contact Information: Contact: Heather Keenan IEC Electronics Corp. (315) 332-4262 John Nesbett/Jennifer Belodeau Institutional Marketing Services (203) 972-9200
IEC Announces the Acquisition of General Technology Corporation
| Source: IEC Electronics
NEWARK, NY--(Marketwire - December 17, 2009) - IEC Electronics Corp. (NYSE Amex : IEC ) announced
the acquisition of General Technology Corporation (GTC), an indirect,
wholly-owned subsidiary of Crane Co. (NYSE : CR ). GTC is a contract
manufacturer located in Albuquerque, New Mexico.
With revenue of approximately $25,000,000, GTC serves a number of leading
customers in the military and defense markets. The combination will be
accretive to IEC shareholders. The purchase price of $14.2 million has
been financed with a credit facility from Manufacturers and Traders Bank
(M&T). No Company stock was issued.
W. Barry Gilbert, Chairman of the Board and CEO, stated, "We have been
searching for a company with a strong quality culture, complementary
technologies and serving similar markets. GTC is a well run company with
strong margins that occupies an important niche in the military and defense
market. Its expertise is in helping its customers, primarily military
"primes," manage their legacy products and programs. This is a unique
niche market for which we envision continued growth. GTC not only supports
our customers' emerging needs, but also provides us with an opportunity to
diversify our customer base. While any acquisition entails risk, we are
encouraged by the depth and quality of its management team and see some
exciting opportunities before us."
As a full service EMS provider, IEC is AS9100, is ISO-9001:2000 and ISO
13485 registered, and a NSA approved supplier under the COMSEC standard.
The Company offers its customers a wide range of services including
design, prototype and volume printed circuit board assembly, material
procurement and control, manufacturing and test engineering support,
systems build, final packaging and distribution. Information regarding IEC
can be found on its web site at www.iec-electronics.com.
The foregoing, including any discussion regarding the Company's future
prospects, contains certain forward-looking statements that involve risks
and uncertainties, including uncertainties associated with economic
conditions in the electronics industry, particularly in the principal
industry sectors served by the Company, changes in customer requirements
and in the volume of sales to principal customers, competition and
technological change, the ability of the Company to control manufacturing
and operating costs, satisfactory relationships with vendors. The
Company's actual results of operations may differ significantly from those
contemplated by any forward-looking statements as a result of these and
other factors, including factors set forth in the Company's 2009 Annual
Report on Form 10-K and in other filings with the Securities and Exchange
Commission.