Research Desk Line-up: Espey Mfg. & Electronics Post Earnings Coverage
LONDON, UK / ACCESSWIRE / October 5, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Methode Electronics, Inc. (NYSE: MEI) ("Methode"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=MEI. The Company announced on October 03, 2017, that its wholly-owned subsidiary, Methode Electronics British Columbia Corp., has acquired Pacific Insight Electronics Corp ("Pacific Insight"), a global lighting, electronics, and full-service solutions provider to the transportation industry, for approximately $114 million. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Methode funded the transaction with available cash and its existing credit facility.
The acquisition is expected to be accretive to earnings in the current fiscal year ending April 28, 2018.
The Company expects pre-tax costs related to the acquisition in the range of $4.8 million to $5.2 million, of which $1.5 million was recognized in Q1.
Pursuant to the acquisition, Pacific Insight's shareholders will receive CAD$18.50 per Pacific Insight Share.
The Pacific Insight Shares are expected to be delisted from the TSX.
Combined Operations will be Positioned to Provide Additional Opportunities for all Stakeholders
Don Duda, President and Chief Executive Officer (CEO) of Methode, stated that with this acquisition and Methode's global scope, Pacific Insight will meet its customers' requested expansion into Asia and Europe; Methode will broaden its portfolio of advanced technologies for LED-based ambient and direct lighting solutions; and the combined operations will be positioned to provide additional opportunities for the Company's stakeholders, including employees, customers, suppliers, and shareholders. Duda further added that he is delighted to officially welcome the employees of Pacific Insight to Methode, and is looking forward to the growth that can be achieved as one company.
Financial and Legal Advisors
Foros provided financial advisory services to Methode; Locke Lord LLP, Stikeman Elliott LLP, and Jones Day acted as legal counsels; while the Company's due diligence process was supported by Ernst & Young.
Pacific Insight Reached Arrangement Agreement with Methode in August 2017
News release suggests that on August 01, 2017, Pacific Insight entered into a definitive agreement with Methode, pursuant to which Methode agreed to acquire, by way of a plan of arrangement, all the outstanding shares of Pacific Insight in an all-cash transaction for approximately CAD$144 million. The arrangement was approved by Methode's security holders on September 26, 2017.
About Methode Electronics, Inc.
Founded in 1946, Methode is a leading developer of custom-engineered and application-specific products and solutions, utilizing the latest technologies. The Company designs, manufactures, and markets devices employing electrical, electronic, wireless, safety radio remote control, sensing, and optical technologies to control and convey signals through sensors, interconnections, and controls.
About Pacific Insight Electronics Corp.
Established in 1979, Pacific Insight is a global solutions provider offering design, development, manufacturing, and delivery of electronic products and full-service solutions to the automotive and commercial vehicle markets. The Company's advanced technologies, including LED lighting systems and electronic modules, are driving automotive advancement and creating a better driving experience.
Last Close Stock Review
On Wednesday, October 04, 2017, the stock closed the trading session at $44.15, rising 1.61% from its previous closing price of $43.45. A total volume of 203.60 thousand shares have exchanged hands. Methode Electronics' stock price surged 14.08% in the last one month, 11.21% in the past three months, and 24.96% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 6.77%. The stock is trading at a PE ratio of 17.95 and has a dividend yield of 0.82%. The stock currently has a market cap of $1.63 billion.
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