Vishay Precision Group, Inc., a leading producer of precision sensors and systems, announced that it has entered into a definitive agreement to acquire Stress-Tek, Inc. of Kent, Washington, a privately held company. The acquisition is expected to close by December 31, 2015, subject to the satisfaction of customary conditions.
Stress-Tek is a designer and manufacturer of state-of-the-art, rugged and reliable strain gage-based load cells and force measurement systems primarily servicing the North American market. Their sensors and display systems are used in a wide range of industries, predominantly in transportation and trucking, for timber, refuse, aggregate, mining and general trucking applications.
In commenting on the acquisition, Marc Zandman, Chairman of the Board of VPG said, “We are excited to welcome the Stress-Tek family of products into VPG. This acquisition supports our corporate growth strategy and allows us to expand our existing product portfolio to new end markets and geographic areas.”
Ziv Shoshani, VPG’s chief executive officer said, “Stress-Tek is an excellent fit for our onboard weighing product line. They are well respected in the industries they serve. The company offers an extensive line of load cells. They also design and manufacture the electronics to integrate with the load cells and sensors to produce complete measurement solutions.”
The purchase price for this business is approximately $20.0 million, which includes the acquisition of real estate valued at $5.5 million, subject to customary post-closing adjustments. VPG will finance the acquisition through a combination of cash on hand and third party borrowings. We expect that Stress-Tek will achieve approximately $9.0 million in annual net sales and approximately $1.1 million in annual EBITDA in 2015. With expected cost synergies, we anticipate that Stress-Tek’s annual EBITDA will increase to approximately $3.0 million over two years.