PE-backed API to sell its electronic manufacturing services business
API Technologies Corp, a portfolio company of J.F. Lehman & Company, has agreed to sell Windber, Pennsylvania-based API Defense USA Inc, its electronics manufacturing services business to Kitron Inc, a subsidiary of Kitron ASA. No financial terms were disclosed. The deal is expected to close in the first quarter of next year. Canaccord Genuity served as financial adviser to API on the transaction with Jones Day and Miller & Chevalier providing legal counsel.
API Technologies Corp. (“API”), a leading provider of high performance RF and microwave signal conditioning and electromagnetic spectrum management solutions, is pleased to announce that it has signed a definitive agreement to sell 100% of the capital stock of API Defense USA, Inc., its Electronics Manufacturing Services business (“EMS” or the “Company”), to Kitron, Inc., a subsidiary of Kitron ASA (collectively, “Kitron”).
EMS, based in Windber, PA, is a leader in the manufacture, testing, and repair services of electronic components and assemblies for original equipment manufacturers (OEMs) and serves customers in the United States. Kitron is one of Scandinavia’s leading electronics manufacturing services companies for the Energy/Telecoms, Industry, Defense, Medical devices and Offshore/Marine sectors. The company is located in Norway, Sweden, Lithuania, Germany, China and the United States. Kitron had revenues of about NOK 2,4 billion in 2017 and has about 1,450 employees.
“We believe Kitron is an ideally positioned buyer to allow EMS to achieve its growth objectives. For API, this allows us to be singularly focused on strengthening and growing our best-in-class technology and market leading product capabilities within our core RF/microwave, microelectronics, electromagnetic integrated solutions, power solutions and secure systems and information assurance businesses,” said API CEO Bob Tavares.
The transaction, which is subject to customary closing conditions, including regulatory approval, is expected to close in Q1 2019.
Canaccord Genuity served as financial advisor to API and Jones Day and Miller & Chevalier provided legal counsel. API is a portfolio company of J.F. Lehman & Company (“JFLCO”), a leading middle-market private equity firm focused exclusively on the aerospace, defense, maritime, government and environmental sectors.
About API Technologies Corp.
API Technologies is an innovative designer and manufacturer of high performance systems, subsystems, modules, and components for technically demanding RF, microwave, millimeterwave, electromagnetic, power, and security applications. A high-reliability technology pioneer with over 70 years of heritage, API Technologies products are used by global defense, industrial, and commercial customers in the areas of commercial aerospace, wireless communications, medical, oil and gas, electronic warfare, unmanned systems, C4ISR, missile defense, harsh environments, satellites, and space. Learn more about API Technologies and our products at www.apitech.com.