Key Tronic Corp., the Spokane Valley-based electronic services manufacturing company, announced this afternoon it has agreed to buy the assets of Sabre Manufacturing, a sheet metal fabrication company in Juarez, Mexico.
The $5.1 million transaction is expected to be completed in July and to be accretive to earnings immediately. Key Tronic said in a press release it plans to fund the transaction with available cash and bank credit line.
Sabre Manufacturing operates a 66,000-square-foot facility near the Key Tronic complex in Juarez and employs about 90 people. The company has more than $7 million in revenue annually, Key Tronic said.
Craig Gates, president and CEO of Key Tronic, said, "This acquisition furthers our strategic focus on providing all the EMS services available from a much larger tier I company, while still bringing the flexibility and high customer service levels of a tier II supplier. We expect rapid integration of Sabre and have already seen significant interest in our expanded capabilities across both our customer bases."
In addition to the plant in Mexico, Key Tronic operates facilities in the U.S. and in China.
For its 2013 fiscal year third quarter, which ended March 30, Key Tronic reported net income of $2.9 million, or 29 cents a diluted share, down from $3.4 million, or 32 cents a share, in the year-earlier quarter.