IEC Electronics Corp. (NYSE: IEC) announced the acquisition of Southern California Braiding Company, Inc. (SCB), a privately held company focused on providing high reliability wire and cable products to the military and defense market. SCB is located in Bell Gardens, California.
W. Barry Gilbert, Chairman of the Board and CEO of IEC, commented, "With this acquisition IEC has strengthened the foundation for achieving its objective to become one of the premier providers to high reliability contract manufacturing markets. SCB is a well run company with strong margins and it occupies an important niche in the military and defense market. They specialize in providing customers, primarily military 'primes' and NASA, with complex and highly reliable cables and wire harnesses built to withstand the demands of extreme environments."
With annual revenue of approximately $20 million, SCB serves a number of customers in the military and defense market. At a purchase price of $25.0 million, the acquisition is expected to be immediately accretive to IEC shareholders. The purchase price has been financed by a credit facility of approximately $24.4 million, provided by Manufacturers and Traders Bank (M&T) and $600,000 in equity.
Gilbert added, "Despite forecasted military cutbacks, SCB supports programs that should be maintained and continue to grow. This acquisition further diversifies IEC's customer base and introduces us to new opportunities with existing customers. SCB complements our existing wire and cable business, IEC Electronics Wire and Cable, developed from our Val-U-Tech acquisition in June 2008. We are encouraged by the depth and quality of the organization and look forward to the expanded opportunities to serve our customers that this combination of two talented teams provides us. This is an excellent acquisition and we are delighted to welcome SCB into the IEC family."
IEC Electronics Corporation is a provider of electronic manufacturing services (EMS) to advanced technology companies primarily in the military and aerospace, medical, industrial and computing sectors. The company specializes in the custom manufacture of high reliability, complex circuit cards, system level assemblies, a wide array of custom cable and wire harness assemblies, and precision sheet metal products. As a full service EMS provider, IEC is a ISO 9001:2008, AS9100 and ISO13485 certified company. For additional information visit: www.iec-electronics.com.
