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|Standex International Announces the Purchase of ATC-Frost Magnetics Inc.|
SALEM, N.H.--(BUSINESS WIRE)--April 4, 2001--Standex International Corporation (NYSE:SXI) announced that it has purchased the Common Stock of ATC-Frost Magnetics Inc. of Oakville, Ontario, Canada for an undisclosed amount of stock and cash.
ATC-Frost Magnetics Inc., with annual sales of approximately $23 million Canadian, is a leading manufacturer of custom magnetic components in Canada and enjoys a greater than 50% share of the Canadian market for power transformers. It sells its products to the appliance, lighting, security, HVAC, medical, consumer and telecom/datacom markets. ATC-Frost also sells its broad range of custom transformers into the US marketplace where the transformer market size is estimated to be $1.5 billion dollars and is growing at an estimated 10% per year. This new subsidiary represents a strategic addition to Standex's electronics group, which currently has production facilities in the United States, United Kingdom and Mexico, where it manufactures various electronic components, assemblies and connectors for the automotive, telecommunications, consumer electronics, computer, air conditioning and refrigeration industries.
In announcing the purchase, Edward J. Trainor, President and CEO of Standex stated: "The strategic acquisition of ATC-Frost offers a number of synergies to our electronics group and is a meaningful step in our efforts to focus resources into engineered products offering custom solutions to our customers. Its offerings have very little overlap with, and are essentially complimentary to, those of Standex Electronics, thus providing a broadening of our product lines. It will enable our electronics group to become a full service custom magnetics provider to the global marketplace and to broaden its market into non-automotive and telecom/datacom industries. Additionally, based on the most recent historical financial results of ATC-Frost, the acquisition is expected to be accretive to Standex's earnings in the first year following acquisition."(1)
Standex International Corporation, with sales of $637 million in fiscal 2000, and operations in the United States, Western Europe, Canada, Australia, Singapore and Mexico, is a global, multi-industry company that manufactures and markets products within three broad business Segments: Food Service, Industrial and Consumer.
(1) These "forward-looking" statements are necessarily dependent upon uncertainties in competitive pricing pressures and market demand.