Standex acquires Renco Electronics
Enhances firm’s custom magnetics scale with highly complementary technical expertise
has acquired privately-held, Florida-based Renco Electronics for approximately USD$28-million in cash with an additional three-year earnout payment based upon achieving certain financial targets. The transaction is being financed from Standex’s existing cash balance. The company expects the acquisition to be accretive to its earnings in its first year of ownership as well as additive to consolidated free cash flow.
“We are very pleased to have acquired Renco Electronics, a great strategic fit, deepening our significant engineering and technical expertise in end markets supported by strong engineer-to-engineer relationships. In addition, Renco’s end markets and customer base in areas such as consumer and industrial are highly complementary to our existing business with the potential to further expand key account relationships and capitalize on cross selling opportunities between the two companies. Renco’s design and manufacturing cycle is extremely efficient, reinforced by a strong global network of proprietary supplier relationships,” says Standex president & CEO David Dunbar.
Customized and standard magnetics
Renco Electronics designs and manufactures customized as well as standard magnetics components and products including transformers, inductors, chokes and coils for power and RF applications. The products are used in consumer, industrial, military, and aerospace end markets. Renco’s trailing 12-month revenues were approximately USD$28-million.
“Standex’s ownership offers us the opportunity to leverage a much broader geographical presence, engineering expertise, complementary product offerings and customer relationships,” adds Edward Rensing, president and CEO of Renco.
Founded in 1955, Renco Electronics, Inc. designs and manufactures customized as well as standard magnetics products. The company has approximately 120 employees and is headquartered in Rockledge, Florida with manufacturing facilities in Rockledge and Asia.
“We have strengthened our competitive advantage by adding scale to our expertise and capabilities in markets that are growing and highly fragmented. The addition of Renco also furthers Standex’s portfolio strategy of building our higher-margin growth business segments into more significant platforms,” concludes Dunbar.