Standex International Corp. has entered into a definitive agreement with Japan-based OKI Electric Industry Co., Ltd. to acquire its wholly owned subsidiary, OKI Sensor Device Corp. Terms of the transaction were not disclosed. OKI Sensor Device is a designer and supplier of magnetic reed switches. It recorded revenue of approximately ¥6.8 billion (approximately $56 million) for its most recently concluded fiscal year ended March 31, 2016 with approximately $12.9 million of this revenue comprised of sales to Standex Electronics. The acquisition, which is anticipated to close on or about March 31, 2017, subject to required regulatory approvals, should be accretive to earnings per share by $0.08-$0.11 in fiscal 2017 and $0.40-$0.44 in fiscal 2018, net of purchase accounting and acquisition costs.
Commenting on the planned transaction, Standex chairman and CEO David Dunbar said, “OKI Sensor Device is recognized throughout the world for its production of robust, high quality magnetic reed switches, while our Standex Electronics business is known for its ability to deliver custom engineered sensor and electro-magnetic solutions to customers in the automotive, aerospace, medical, industrial and appliance markets. The acquisition enhances our access to important Asian markets. In addition, by leveraging combined engineering, manufacturing and sales capabilities, we will be able to provide customers with a world class suite of reed switches and related magnetic solutions while continuing to serve OKI Sensor Device’s diverse distribution channels. OKI Sensor Device has an experienced and capable management team, and we look forward to welcoming its employees and partners to Standex.”
“As an existing customer, we have long admired the engineering and quality of OKI Sensor Device’s products,” said Standex Electronics President John Meeks. “We already enjoy a strong long-term relationship with management which should greatly facilitate our ability to enhance product offerings and further our global reach.”
