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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (5570)11/5/2019 11:39:42 AM
From: richardred  Respond to of 6544
VPG speculation & 2019 SITT pick makes a niche acquisition. For the premium price paid and future payout. The acquisition doesn't look to be accretive to earnings. Although an acquirer itself yesterday. I'm still looking at VPG as a niche acquisition for someone bigger.

Message 32280412

Vishay Precision Group (VPG) Group Acquires Dynamic Systems

Vishay Precision Group, Inc. (NYSE: VPG), a leading producer of precision sensors and sensor-based systems, announced it acquired New York-based Dynamic Systems Inc. (DSI), a specialized provider of dynamic thermal-mechanical test and simulation systems used to develop new metal alloys and optimize production processes, for a purchase price of $41 million, subject to customary adjustments, plus a potential earn out of up to an additional $3 million.

Commenting on the acquisition, Marc Zandman, Chairman of the Board of VPG said, “We are pleased with the addition of DSI to the VPG platform and the value this transaction creates for our shareholders. Acquiring attractive, profitable businesses is a key element of our capital allocation strategy to create value.”

Ziv Shoshani, VPG’s Chief Executive Officer, commented: “DSI is an established, high margin business, with a strong brand and has the largest installed base of products of its type in the world, according to market estimates. DSI expands our position in the steel market and offers opportunities for growth by leveraging our sales capabilities and market presence, and by expanding DSI’s product line to address new opportunities.”

Over the past three years, DSI achieved average annual sales of $16 million and high EBITDA margins. VPG expects DSI’s Gleeble® Systems to benefit from increasing materials development and research, due to several long-term trends such as efforts to make steel and aluminum lighter and stronger for next-generation applications being developed in the automotive, aerospace, energy, and heavy industrial markets.

The Company will discuss the acquisition during its fiscal 2019 third-quarter earnings call scheduled for Tuesday, November 5, 2019 at 10AM Eastern.