Artaflex, an electronic contract manufacturer, has entered into an agreement to acquire MTI International for US$12.7 million. As part of this transaction Kilmer Capital Partners has agreed to invest C$15.3 million in Artaflex through a C$10.3 million secured convertible debenture and a C$5.0 secured promissory note. The net proceeds of the debenture and the promissory note will be used to fund the acquisition of MTI International.
MTI operates in the electronics manufacturing services industry and specializes as a full service provider of high value, complex, low to medium volume assemblies including printed circuit boards, final box build and system integration and to a lesser extent thick film hybrid circuits manufacturing. The company serves the defense & aerospace; industrial; medical; and automotive markets. MTI was founded in 1975 and is based in Milwaukee, WI (www.mtielectronics.com).
“We are extremely pleased to begin our expansion into the US with the acquisition of MTI. Their focus on manufacturing high mix, high reliability products in segments such as defense, aerospace and medical, as well as being centrally located in Milwaukee were key factors in our decision making process” says Paul Walker, CEO of Artaflex. “Our management team at Artaflex has had significant experience acquiring and growing operations in the US over the past 20 years, and with MTI as a base, we will be able to leverage that combined knowledge again”.
Artaflex is an electronics contract manufacturer serving high–mix and high-complexity original equipment manufacturers. The company provides engineering services, supply chain management, PCB Assembly, and final integration services. Artaflex is based in Toronto (www.artaflex.com).
Kilmer Capital Partners makes control and minority investments of $5 million to $50 million in companies that have revenues from $20 million to $200 million. The firm is industry agnostic but has a specific interest in the electronics, communications, technology, food, apparel, healthcare, consumer products, media and entertainment sectors. Kilmer Capital is based in Toronto (www.kilmercapital.com).
“This is a particularly exciting new opportunity for us. Not only do we see this as a great starting point for Artaflex in executing its US expansion, but on an overall level this gives us the chance to partner with Paul Walker and Phil Woodard for a second time,” said Anthony Sigel, President and Managing Partner of Kilmer Capital Partners. “During the 1990’s we worked side by side with Paul and Phil building SMTC into an internationally recognized EMS Player. We’re really looking forward to this opportunity to support them once again in their efforts to build a successful Canadian electronics company”.