Electronics manufacturing services provider Benchmark Electronics Inc. has acquired the contract manufacturing operations of CTS Corp. in a $75 million deal.
CTS' manufacturing segment focuses on complex, high-mix and low-volume manufacturing in the industrial, defense and aerospace, medical and communications markets.
The acquisition of CTS' EMS business is an "excellent cultural fit" for Benchmark, said Gayla Delly, CEO and president of the Angleton, Texas-based EMS provider.
The acquisition will expand Benchmark's customer base in "in non-traditional and highly regulated markets and also allows us to strengthen the depth and scope of Benchmark's new product express capabilities on the West Coast," said Delly.
Kieran O'Sullivan, president and CEO of CTS, said Benchmark is a "highly compatible fit" for CTS' EMS customers. The acquisition will result in expanded global design and supply chain management services for customers, he said.
O'Sullivan added that selling CTS' EMS operation will enable CTS to sharpen its "focus on our strengths in our components and sensors businesses." He said CTS will be better positioned to meet the "evolving needs of our customers and increase margins by introducing new value-added products."
The acquisition includes five manufacturing locations including facilities in Moorpark, Calif.; Londonderry, N.H.; Bangkok, Thailand; Matamoros, Mexico; and San Jose, Calif. Those facilities employ about 1,000 workers in total. Benchmark currently has 21 manufacturing operations in seven countries.
The transaction is expected to generate annual revenues in excess of $200 million. Benchmark had $2.4 billion in sales in 2012.