Kitron — M&A Activity 2019

Feb 15, 2019

Acquisition of API business completed

Acquisition of API business completed

(2019-02-15) Kitron has completed the acquisition of the EMS division of API

Technologies Corp., substantially strengthening its position in the US market.

The transaction is completed according to the terms set out in the stock

exchange announcement on 30 November 2018, including all necessary governmental

approvals. Kitron will consolidate the acquired business effective today.

"This acquisition is a step change for Kitron in the US market and comes in

response to customer demand for a more substantial presence in this important

market," said Cathrin Nylander, CFO and acting CEO of Kitron.

The acquired business is focused on defence, aerospace, medical/industrial, and

communications/consumer, and it is well aligned with Kitron's overall strategy.

It is located in Windber, Pennsylvania, close to Kitron's current US facility in

Johnstown, Pennsylvania, with 115 employees operating a total of six production

lines and a facility of approximately 10 000 square meters. Total revenues in

2017 amounted to approximately USD 30 million.

"We know the API business well, and the process from the announcement until

closing has further strengthened our confidence in this transaction, which we

believe is a win-win proposition: We gain critical mass in the US market and the

Windber facility finds a better home in a group with EMS as its core business.

We expect the unit generate an operating profit on a stand-alone basis going

forward and see substantial potential for further profitability improvements

when it becomes part of the Kitron group," said Hans Petter Thomassen, Vice

President North America.

The purchase price to be paid, after certain post-signing adjustments, is USD

14.8 million, subject to post-closing adjustments, if any.

Kitron expects the transaction to be earnings neutral in 2019 and earnings

enhancing in 2020 and beyond.

For further information, please contact:

Cathrin Nylander, CFO and acting CEO, tel: +47 900 43 284

Hans Petter Thomassen, Vice President North America, tel. +47 913 92 360

E-mail: investorrelations@kitron.com

Kitron is one of Scandinavia's leading electronics manufacturing services

companies for the Energy/Telecoms, Industry, Defence/Aerospace, Medical devices

and Offshore/Marine sectors. The company is located in Norway, Sweden,

Lithuania, Germany, China and the United States. Kitron had revenues of about

NOK 2.6 billion in 2018 and has about 1,700 employees, including the acquired

API business. www.kitron.com

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.