RF Industries Completes Acquisition Of Rel-Tech Electronics

(RTTNews) - RF Industries, Ltd. (RFIL) said Friday that it has completed the acquisition of Rel-Tech Electronics, Inc., a Milford, Connecticut-based manufacturer of custom cable assemblies and wiring harnesses, for a total purchase price of up to $3.1 million.

The acquisition of all outstanding shares of Rel-Tech consists of $2.1 million in cash, 50,467 shares of RFI's common stock valued at $200,000 and, if certain financial targets are met over a three-year period, cash earn-out payments of up to $800,000.

Privately-owned Rel-Tech, which occupies a 14,000 square foot facility with about 60 full-time employees, had revenues of about $7.7 million for the calendar year 2014.

One of the two original founders, Ralph Palumbo, will remain as President of Rel-Tech while Wilfred LeBlanc has agreed to a three-year consulting agreement with Rel-Tech. Rel-Tech has also entered into employment agreements to retain the five key managers.