Methode Electronics (NASDAQ:METH)
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Methode Electronics, Inc. (NASDAQ:METH), a global manufacturer of
electronic components and subsystem devices, today announced that it has
acquired one hundred percent of the member interest of TouchSensor
Technologies, LLC from Gemtron Corporation for $65 million in cash and
assumed liabilities. Gemtron Corporation is owned by SCHOTT North
America and AFG Industries.
TouchSensor is the North American market leader in solid-state,
field-effect switching. Using its patented technology, the Company
designs and manufactures touch-sensitive user interface panels found on
products such as home appliances, commercial beverage dispensers and
automobiles. More durable and reliable than mechanical or membrane
switches, TouchSensor® panels are becoming
increasingly popular and are used by many of the world’s
leading brands, including Whirlpool/Maytag, Electrolux, LifeFitness,
Precor, Kohler, General Electric and BMW.
This transaction, which is anticipated to be accretive to Methode’s
fiscal year 2008 earnings, directly complements Methode’s
corporate strategy, offering expected near- and long-term synergies.
TouchSensor’s patented applications are
already found in multiple industries and offer Methode a platform from
which to expand into new markets, such as medical and point-of-sale
equipment. Moreover, this acquisition provides Methode with an exciting
new technology to offer its existing and future automotive OEM customers.
TouchSensor products are found on such consumer goods as cooktops, wall
ovens and ranges, washing machines, bath/shower controls and exercise
equipment. Their products are also beginning to be used in automotive
applications, such as the 2007 BMW X5 radio controls and an interior
switch application on a domestic vehicle for the 2008 model year. With
more than 15 patents for its solid-state, field-effect switching
technologies, TouchSensor has shipped approximately four million touch
panels globally for over 100 different applications.
“The acquisition of TouchSensor Technologies
is a significant step for our company, providing Methode Electronics the
ability to broaden our presence into other industries while providing
meaningful expansion opportunities in the automotive market,”
said Donald W. Duda, President and Chief Executive Officer, Methode
Electronics.
TouchSensor’s trailing twelve-month sales were
approximately $38 million and are expected to grow significantly over
the next twelve months with newly booked business between $14 million
and $16 million. In the solid-state switch market, which is expected to
grow in excess of 25 percent each year for the next several years,
TouchSensor is ideally positioned to achieve double-digit compounded
annual sales growth for at least the next five years.
Conference Call
Methode will announce its third quarter fiscal year 2007 earnings
results on March 2, 2007, before the market opens. On the same day,
Methode’s President and Chief Executive
Officer, Donald W. Duda, and Chief Financial Officer, Douglas A. Koman,
will host a conference call at 10:00 a.m. Central Time to discuss its
third quarter fiscal year 2007 earnings results and this acquisition
announcement. Methode invites you to listen to the webcast of this call
by visiting Methode’s website at www.methode.com
and entering the “Investor Relations”
page and then clicking on the “Webcast”
icon. You may participate on the conference call by dialing 877-407-8031
for domestic callers and 201-689-8031 for international callers. For
those who cannot listen to the live broadcast, a replay, as well as an
MP3 download will be available shortly after the call. The replay and
download of the call will be available for seven days by dialing
877-660-6853 for domestic callers and 201-612-7415 for international
callers, both using the playback account number 286 and conference ID
number 232236.
About Methode Electronics
Methode Electronics, Inc. is a global manufacturer of electronic
components and subsystems. Methode designs, manufactures and markets
devices employing electrical, electronic, wireless, sensing and optical
technologies. Methode’s components are found
in the primary end-markets of the automotive, appliance, communications,
aerospace, rail and other transportation industries, and the consumer
and industrial equipment markets. Further information can be found at
Methode’s website: www.methode.com.
About TouchSensor Technologies
TouchSensor Technologies is the market leader in solid-state
field-effect switching technology. TouchSensor has produced and shipped
over four million input panels used in the consumer durables
sector, including home appliances used for cooking, laundry,
refrigeration, dishwashing, as well as bath/shower controls. Its
technology is also used in commercial applications such as exercise
equipment, point-of-sale beverage dispensers, and automotive
applications. TouchSensor has more than 15 patents for its solid-state,
field-effect switching technology. Further information can be found at
TouchSensor’s website: www.touchsensor.com
Forward-Looking Statements
Certain statements in this press release dated March 1, 2007, containing
information for TouchSensor sales projections for the 2008 fiscal year,
are forward-looking statements that are subject to certain risks and
uncertainties. Our business is highly dependent upon three large
automotive customers and specific makes and models of automobiles. The
Company's results will be subject to many of the same risks that apply
to the automotive, computer, telecommunication and appliance industries,
such as general economic conditions, interest rates, consumer spending
patterns and technological changes. Other factors, which may result in
materially different results for future periods include: significant
customer bankruptcy filings; restructuring, operational improvement and
cost reduction programs currently under review by Methode; the current
macroeconomic environment, including higher petroleum and copper prices
affecting material and components used by Methode; potential
manufacturing plant closures by automotive customers; potential strikes
at automotive customers; and significant fluctuations in the demand for
certain automobile models. In addition, market growth, operating costs,
currency exchange rates and devaluations, delays in development,
production and marketing of new products and other factors set forth
from time to time in our reports filed with the Securities and Exchange
Commission, impact our business. Any of these factors could cause our
actual results to differ materially from those described in the
forward-looking statements. The forward-looking statements in this press
release are subject to the safe harbor protection provided under the
federal securities laws. All information in this press release is as of
March 1, 2007. Methode undertakes no duty to update any forward-looking
statement to conform the statement to actual results or changes in the
Company’s expectations.