Key Tronic Corp., the Spokane Valley-based provider of electronic manufacturing services, announced this afternoon that it has agreed to acquire CDR Manufacturing Inc., a Louisville, Ky.-based company doing business as Ayrshire Electronics that provides printed circuit board assembly and other manufacturing services.

Under the letter of intent that Key Tronic signed, the Spokane Valley company agreed to pay $46.9 million cash for CDR, pending completion of due diligence on the acquisition.

CDR has annual revenues of about $120 million and operates manufacturing facilities in Minnesota, Arkansas, Mississippi, Kentucky, and Mexico, Key Tronic said in a press release. Ron Klawitter, chief financial officer at Key Tronic, says CDR currently employs about 750 people, and upon completion of the acquisition, Key Tronic will have a total of about 3,300 employees.

Key Tronic expects to complete the acquisition during its fiscal 2015 first quarter, which ends in late September. The company said it plans to finance the acquisition with cash on hand and a term loan.

Separately, Key Tronic said it expects to report lower-than-anticipated revenue of $72 million for the fourth quarter of its 2014 fiscal year, ended June 28. The company had projected sales of $78 million to $82 million for the quarter previously. As a result, net income for the quarter is expected to come in at between 10 cents and 12 cents per common share.

The lower revenue figures are due to a temporary reduction in production levels for a longstanding customer and a delay on the start of a new program.

Craig D. Gates, president and CEO of Key Tronic, said in a release, “While the unanticipated revenue shortfall in the fourth quarter was disappointing, we expect to see a return to sequential growth in the first quarter of fiscal 2015 as our new programs continue to ramp up.”

The company’s quarterly and fiscal year-end earnings are scheduled to be announced Aug. 19.