Measurement Specialties Buys Former Spectrum Sensors Business

Apr 17, 2013

HAMPTON, Va., -- Measurement Specialties, Inc. a designer and manufacturer of sensors and sensor-based systems, has bought the capital stock of Spectrum Sensors and Controls, Inc., a leader in the design and manufacture of custom temperature probes, high reliability encoders and inertial sensors, from API Technologies Corp. for $51.4 million. The acquisition closed April 17.

Frank Guidone, company CEO commented, "Spectrum Sensors is the combination of three prior acquisitions: Advanced Thermal Products, located in St Mary's, Pa., primarily producing HVAC and refrigeration temperature probes and assemblies, JDK Controls located in GrassValley, Calif., producing high-reliability encoders for aerospace and military applications, and Summit Instruments located in Akron, Ohio, producing inertial test systems for aerospace and military markets. The pieces fit nicely into our temperature, position and vibration product lines. Nearly 40% of the third-party sales are manufactured in an API shared facility in Juarez, Mexico, 80% of which is thermal products. This production will be moved to MEAS's Chengdu facility (for thermal products) and Shenzhen facility (for position products) within the first 9 months post close. This integration, along with other sourcing and manufacturing synergies, should generate over $1.5 million in incremental annual cost savings benefit for the company. Once integrated, we expect the transaction to contribute over $8 million in annual EBITDA and approximately $26 million in annual sales."
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