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newsrelease
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CTS
CORPORATION Elkhart, Indiana 46514 • (574)
523-3800
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January 24, 2008
FOR RELEASE: Immediately
Elkhart, IN…CTS Corporation (NYSE: CTS) today announced it has reached a definitive agreement to acquire Tusonix, Inc., a privately held company, for $12.25 million in cash. Tusonix is a leader in the design and manufacture of ceramic EMI/RFI (electromagnetic interference and radio frequency interference) filters, capacitor assemblies and related components, serving the military, industrial, instrumentation and telecom markets. EMI/RFI filters protect against electromagnetic noise. The company operates from facilities in Tucson, Arizona and Nogales, Mexico. CTS expects the transaction to be accretive in year one and close by the end of January 2008.
First year sales are estimated at approximately $15 million to broadly distributed customers. The worldwide market for the acquired products is estimated to exceed $100 million.
The acquisition combines the Tusonix products with complementary offerings from CTS’ Electronic Components business, which provides radio frequency (RF) filters, RF modules, oscillators, resistor arrays and thermal management components. The acquisition will broaden the CTS portfolio and enable cross-selling of a broader range of complementary products to existing customers of both companies. In addition, Tusonix’s presence in the instrumentation and industrial process control market will open up new customer relationships and selling opportunities. CTS plans to continue operations at both of the current Tusonix facilities.
Commenting on the acquisition, Vinod M. Khilnani, CTS President and Chief Executive Officer said, “Tusonix has proprietary single-layer and multi-layer ceramic dielectric and material technology and is capable of producing thousands of product variations, which will allow us to broaden our product and technology offerings. This synergistic acquisition of Tusonix in our Components and Sensors segment is an excellent expansion of our technology, fits with our distribution channels and further expands our customer base.”
For more information on
Tusonix products, please contact customer service at (520)744-0400.
About CTS
CTS is a leading designer
and manufacturer of electronic components and sensors and a provider of
electronics manufacturing services (EMS) to OEMs in the automotive,
computer, communications, medical, defense and aerospace and industrial
markets. CTS manufactures products in North America, Europe and Asia. CTS'
stock is traded on the NYSE under the ticker symbol "CTS.”
About Tusonix
Tusonix is a world leader in
the design and manufacture of Ceramic EMC Products, providing an extensive
line of EMI/RFI Filters and Capacitors and Coaxial Resonators solutions to
OEMs in the military, industrial, instrumentation and telecom markets.
Tusonix manufactures products in Tucson, Arizona
and Nogales, Mexico.
Safe Harbor Statement
This press release contains
statements that are, or may be deemed to be, forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, but are not limited to, any
financial or other guidance, statements that reflect our current
expectations concerning future results and events, and any other statements
that are not based solely on historical fact. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak only
as of the date hereof. These forward-looking statements are made subject to
certain risks, uncertainties and other factors, which could cause our actual
results, performance or achievements to differ materially from those
presented in the forward-looking statements, including, without limitation,
rapid technological change and general market conditions in the automotive,
communications and computer industries; reliance on key customers; CTS’
ability to protect its intellectual property; pricing pressures and demand
for CTS’ products; risks associated with CTS’ international operations,
including trade and tariff barriers, exchange rates and political and
geopolitical risks; and the impact of the accounting misstatements at its
Moorpark and Santa Clara, California locations, including the results or the
impact of the SEC’s informal inquiry into these misstatements. For more
detailed information on the risks and uncertainties associated with CTS’
business, see the reports CTS files with the SEC. CTS undertakes no
obligation to publicly update its forward-looking statements to reflect new
information or events or circumstances that arise after the date hereof,
including market or industry changes.
| Contact: | Donna
L. Belusar, Senior Vice President and Chief Financial Officer Mitchell J. Walorski, Director Planning and Investor Relations |
| CTS Corporation, 905 West Boulevard North, Elkhart, IN 46514 | |
| Telephone: (574) 523-3800, Fax: (574) 293-6146 | |
| www.ctscorp.com |