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8-K - IEC ELECTRONICS CORP | v205873_8k.htm |
Exhibit
99.1
Newark, NY – December 17,
2010 – IEC Electronics Corp. (NYSE Amex: 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.
With
annual revenue of approximately $20 million, SCB serves a number of leading
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.
W. Barry
Gilbert, Chairman of the Board and CEO, stated, “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.
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.”
About
IEC Electronics
IEC Electronics
Corporation is a premier 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 world-class ISO 9001:2008,
AS9100 and ISO13485 certified company. The AS9100 certification enables IEC to
serve the military and commercial aerospace markets. The ISO13485
certification supports the quality requirements of medical device
markets. The Company is also ITAR registered and NSA approved under
the COMSEC standard. IEC Electronics is headquartered in
Newark, NY (outside of Rochester) and also has operations in Victor, NY,
Rochester, NY and Albuquerque, NM. Additional information about IEC
can be found on its web site at www.iec-electronics.com.
The
foregoing, including any discussion regarding the Company's future prospects,
contains certain forward-looking statements that involve risks and
uncertainties, including uncertainties associated with economic conditions in
the electronics industry, particularly in the principal industry sectors served
by the Company, changes in customer requirements and in the volume of sales to
principal customers, competition and technological change, the ability of the
Company to control manufacturing and operating costs, satisfactory relationships
with vendors. The Company's actual results of operations may differ
significantly from those contemplated by any forward-looking statements as a
result of these and other factors, including factors set forth in the Company's
2010 Annual Report on Form 10-K and in other filings with the Securities and
Exchange Commission.
Contact:
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Susan
E. Topel-Samek
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John
Nesbett or Jennifer Belodeau
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Vice
President & CFO
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Institutional
Marketing Services
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IEC
Electronics Corp.
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(203)972-9200
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(315)332-4443
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jnesbett@institutionalms.com
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stopel@iec-electronics.com
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jbelodeau@institutionalms.com
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