Benchmark Electronics Buys CTS' Electronics Manufacturing Solutions Business

(RTTNews) - CTS Corp. (CTS) announced it has entered into a definitive agreement with Benchmark Electronics Inc. (BHE), under which Benchmark has acquired CTS' Electronics Manufacturing Solutions business for $75 million in cash. The deal includes five manufacturing facilities located in Moorpark, CA, Londonderry, NH, Bangkok, Thailand, Matamoros, Mexico, and San Jose, CA and approximately 1,000 employees.

CTS Corp. also said it will continue to right size global manufacturing footprint and evaluate ways to streamline the business and reduce costs, as part of its company-wide strategic evaluation.

CTS Corp. said, by sharpening focus on strengths in Components and Sensors businesses through the transaction, it will be better positioned to meet the evolving needs of our customers, increase margins by introducing new value-added products.

Benchmark Electronics expects the transaction to generate annual revenues in excess of $200 million and be accretive to earnings in 2014.