IEC Electronics building a solid exclusively 'US made' manufacturing niche
Last updated: 12:44 22 Nov 2021 EST, First published: 06:45 07 Oct 2021 EDT
Snapshot
- IEC Electronics and Creation Technologies complete tender offer
- IEC Electronics reveals rise in revenue in fiscal 2Q, expects traction to continue to 3Q
About the company
IEC Electronics Corp - which agreed to a takeover by Creation Technologies Inc in Aust 2021 - is a provider of electronic manufacturing services to advanced technology companies that produce life-saving and mission-critical products in the aerospace, defense, industrial, and medical sectors. The company specializes in delivering technical solutions for the custom manufacture of complex full system assemblies by providing on-site analytical testing laboratories, custom design and test engineering services combined with a broad array of manufacturing services encompassing printed circuit board assembly, interconnect solutions, and precision metalworking. IEC Electronics is headquartered in Newark, NY and also has operations in Rochester, NY and Albuquerque, NM.
How it is doing
IEC Electronics (NASDAQ:IEC) Corp. and Creation Technologies Inc. have jointly announced the successful completion of the tender offer by CTI Acquisition Corp. for all the issued and outstanding shares of IEC for a price of $15.35 per share in cash, without interest and any applicable withholding taxes.
The offer expired at 5:00 pm, New York city time, on October 4, 2021. Creation said it expects to complete the acquisition of IEC on Tuesday through a merger without a vote of IEC stockholders in line with Section 251(h) of the general corporation law in the state of Delaware.
On August 12, 2021, IEC announced it had signed a definitive merger agreement with Creation Technologies, that will see the latter acquire all outstanding shares of IEC. Creation has agreed to pay $15.35 per share in cash, which represents a fully diluted equity value of around $173.8 million and an aggregate enterprise value of $242.3 million, based upon net debt of $68.6 million.
The depository for the offer has advised Creation that, as of the expiration of the offer, a total of 7,731,697 shares have been validly tendered, which represents around 72.5% of IEC’s outstanding shares. In addition, an additional 372,889 shares had been tendered by notice of guaranteed delivery, representing another 3.5% of IEC's outstanding shares.
IEC Electronics (NASDAQ:IEC) Corp. and Creation Technologies Inc. jointly announced that CTI Acquisition Corp., an entity controlled by Creation, had extended the offer period of the previously initiated cash tender by the merger sub to buy all the issued and outstanding shares of IEC to 5:00 pm, New York City time, on October 4, 2021, unless further extended.
The tender offer was previously scheduled to expire at 5:00 pm ET on September 30, 2021.
IEC Electronics (NASDAQ:IEC) Corp said it has signed a definitive merger agreement with Creation Technologies Inc, that will see the latter acquire all outstanding shares of IEC Electronics (NASDAQ:IEC).
Creation has agreed to pay $15.35 per share in cash, which represents a fully diluted equity value of approximately $173.8 million and an aggregate enterprise value of $242.3 million, based upon net debt of $68.6 million.
What management says
IEC Electronics Corp (NASDAQ:IEC) CEO Jeff Schlarbaum tells Proactive the New York-based group's second quarter results for 2021 included revenue of $45.4 million, a year-over-year increase of 2.7% from $44.2 million at the same stage in 2020. Schlarbaum says while a few 'major technical challenges' put downward pressure on its margins with work delays, the silver lining is its third quarter, he expects more normalized margin levels, at much higher revenue levels as well.