Kimball Electronics completes reptron acquisition
Feb 16, 2007
Kimball Electronics Group, a division of Kimball International, Inc. and Reptron Electronics, Inc. announced that they have closed on their definitive merger announced last December.
The agreement, as amended, had been unanimously approved by the boards of directors of both Kimball and Reptron, but was subject to Reptron shareholder approval, which was obtained at a special meeting of shareholders held earlier today. The voting results as certified by the Inspector of Elections were as follows: 84.4% of the issued and outstanding shares voted at the meeting; 2,561,042 shares, representing 51.2% of the shares outstanding, voted in favor of the merger; 1,676,590 shares, representing 33.39% of the shares outstanding, voted against; 376 shares, representing .007% of the shares outstanding, abstained.
Under the terms of the agreement, Reptron will become a wholly owned subsidiary of Kimball. Reptron's four manufacturing operations located in Tampa, Florida; Hibbing, Minnesota; Gaylord, Michigan; and Fremont, California will be renamed with Kimball Electronics identities. The acquisitions will increase Kimball's capabilities and expertise in support of the company's long term strategy to grow business in the medical electronics and high end industrial sectors. Reptron's sales revenue for the 12 months ending September 30, 2006 was $145 million.
"We are very pleased to welcome the fine Reptron organization into the Kimball Electronics family," said Don Charron, President, Kimball Electronics. "We look forward to bringing a deeper package of value, an expanded global supply chain, and a global footprint of production capabilities to our new customers...By doing so, we believe that our customers will be able to shift their own resource allocations from manufacturing to focus on other business areas such as product marketing and development."
"Kimball's culture of excellence and committed customer service is easily embraced by our employees and will provide for a seamless transition without loss of performance," said Paul Plante, Reptron's Chief Executive Officer.
Jim Thyen, President and Chief Executive Officer, Kimball International, stated, "We believe this combination of medical expertise and operational excellence, along with our existing global footprint and financial strength, will make for an excellent organization, not only supporting our growth and diversification strategy, but adding increased value to both new and existing customer relationships."
With the completion of this acquisition, sales to customers in the medical sector represent the largest percentage of Kimball Electronics' business. "The medical industry is being tracked as possessing some of the greatest growth potential among EMS (Electronics Manufacturing Services) companies," stated Charron. "We intend to pursue growth and diversification in the medical field while maintaining our commitments to our other key markets."