SALEM — Salem-based electronics manufacturing company Standex International Corp. plans to acquire Torotel, a Kansas company that makes precision magnetic components, for $48 million, the companies announced.
The cash deal includes Standex assuming debt of approximately $1.4 million, according to a Dec. 2 news release. The transaction is expected to close in the first quarter of 2020 and is subject to closing conditions and regulatory approvals, including the approval of Torotel’s shareholders. Standex (NYSE: SXI: $78.24) expects the deal to improve its earnings “slightly” in its first year of ownership, excluding accounting and transaction costs.
“Torotel is a strong strategic fit with highly complementary capabilities to our existing high reliability magnetics portfolio, further adding significant technical and application expertise as well as strengthening our value proposition with industry leading customers,” Standex President and Chief Executive Officer David Dunbar said in a statement.
Torotel, based in Olathe, Kan., specializes in the custom design, manufacture and sale of precision magnetic components including electro-mechanical assemblies and high voltage transformers for use in equipment such as aircraft navigational equipment and other applications, the release said.