Acquisition Expected to Expand Product Offerings and Accelerate Growth
SEATTLE, Aug. 21, 2018 – Grakon Group, a global leader in the design, development and manufacture of advanced lighting and electronics systems for premier vehicle Original Equipment manufacturers, announced on Monday it has entered into a definitive agreement to be acquired by Methode Electronics, Inc. (NYSE: MEI), a global developer of custom engineered and application-specific products and solutions. With access to markets around the world and complementary advanced technologies and innovations, the size and financial strength of the combined businesses will present customers with additional value through an expanded and diversified portfolio of products and a global manufacturing footprint.
Grakon’s President and Chief Executive Officer, Dave Paborsky, said, “Grakon Group is excited to be joining forces with Methode. Upon closing, our companies will be positioned to accelerate our leadership as a global solutions provider of advanced lighting systems and electronic controls for premier vehicle Original Equipment Manufacturers.”
“I would like to thank Industrial Growth Partners (www.igpequity.com) for being great stewards of the business. Together, we have invested in engineering and manufacturing capabilities that have benefited our customers, employees, and stakeholders,” Paborsky said.
In making the announcement, Methode’s President and Chief Executive Officer, Donald W. Duda, said, “Grakon will enhance our product line, diversify our business mix into new end-markets and allow us to serve a broadly expanded universe of customers. The company has developed an extensive array of lighting and electronic controls uniquely engineered for diverse and growing transportation applications. Grakon’s solutions align with global trends including increasing LED adoption and advanced driver assistance, while providing differentiation and critical functionality. This transaction furthers our objective of pursuing strategic acquisitions where we can leverage our core competencies and provide an attractive value proposition for our shareholders.”
As a subsidiary of Methode, Grakon Group will continue to operate its businesses in normal course, and its name and brands will remain intact. The acquisition is subject to customary closing conditions, including expiration of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The transaction is expected to be completed in September 2018.
Headquartered in Seattle, WA, Grakon (www.grakon.com) was established in 1977 and is a global leader in the design, development, and manufacture of advanced lighting and electronics systems, and engineered trim components for premier vehicle Original Equipment Manufacturers in the heavy truck, bus, rail, and powersports markets. Subsidiaries include Hamsar (www.hamsar.com) located in Burlington, Ontario and BMAC (www.bmac.ltd.uk) located in Manchester, England.
Methode (NYSE: MEI) is a global developer of custom engineered and application specific products and solutions with manufacturing, design and testing facilities in Belgium, Canada, China, Egypt, Germany, India, Italy, Lebanon, Malta, Mexico, Singapore, Switzerland, the United Kingdom and the United States. Methode designs, manufactures and markets devices employing electrical, electronic, wireless, safety radio remote control, sensing and optical technologies to control and convey signals through sensors, interconnections and controls. Methode’s business is managed on a segment basis, with those segments being Automotive, Interface, Power Products and Other. Methode’s components primarily serve the automobile, computer, information processing and networking equipment, voice and data communication systems, consumer electronics, appliances, aerospace vehicles and industrial equipment end markets. Further information can be found on Methode’s website www.methode.com.