N@N

CTS Announces Agreement to Acquire Fordahl SA, a Swiss Designer and Manufacturer of Highly Engineered Electronic Components

^{Published on 2010-12-16 06:25:56 - Market Wire}
 

ELKHART, Ind.--([ BUSINESS WIRE ])--CTS Corporation (NYSE: CTS) today announced it has reached a definitive agreement to acquire certain assets and liabilities of Fordahl SA, a privately held company located in Brgg, Switzerland. Revenues are initially estimated at $5 million in 2011 and are expected to grow double-digit over the next several years.

"We are very pleased to continue our strategic expansion of electronic components capabilities and technologies. The Fordahl product line is capable of meeting the most stringent requirements and now allows CTS to offer products for the full industrial temperature range for telecommunications equipment."

The Fordahl product line brings high performance temperature compensated crystal oscillators (TCXOs) and voltage controlled crystal oscillators (VCXOs), expanding CTSa™ extensive frequency product portfolio from clocks and crystals to highly-engineered precision ovenized oscillators. The acquisition adds new customers and opens up new market opportunities including products for European military applications.

Vinod M. Khilnani, CTS Chairman and Chief Executive Officer, commented, "We are very pleased to continue our strategic expansion of electronic components capabilities and technologies. The Fordahl product line is capable of meeting the most stringent requirements and now allows CTS to offer products for the full industrial temperature range for telecommunications equipment.a

The agreement is subject to the approval of Fordahl shareholders and certain conditions typical of an acquisition of this type. CTS expects the transaction to close within the next 30 days.

Nils Engdahl, President of Fordahl SA, will join CTS as the European Operations Manager responsible for the full range of CTSa™ and Fordahla™s combined frequency control products.

For more information on frequency control products, please contact Dave Holmes at 630-577-8890.

About CTS

CTS is a leading designer and manufacturer of electronic components and sensors and a provider of electronics manufacturing services (EMS) to OEMs in the automotive, communications, medical, defense and aerospace, industrial and computer markets. CTS manufactures products in North America, Europe and Asia. CTS' stock is traded on the NYSE under the ticker symbol "CTS.a To find out more, visit the CTS Web site at [ www.ctscorp.com ].

About Fordahl SA

Fordahl SA was founded in 1981, establishing itself as a European-based global leader in the area of high end miniature frequency control products used in telecommunications, data communications, timing, navigation, military, aerospace and instrumentation systems. Products are marketed globally through sales offices in Europe, North America and Asia.

Safe Harbor Statement

This press release contains statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, any financial or other guidance, statements that reflect our current expectations concerning future results and events and any other statements that are not based solely on historical fact. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on various assumptions as to future events, the occurrence of which necessarily are subject to uncertainties. These forward-looking statements are made subject to risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from those presented in the forward-looking statements, including, without limitation: changes in the economy generally and in respect to the businesses in which CTS operates; pricing pressures and reduction in demand for CTSa™ products, especially if economic conditions do not recover or continue to worsen in CTSa™ served markets, including but not limited to: the automotive, computer equipment or communications markets; disruption, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged by CTS and the availability and cost of credit in the future; the financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability or ongoing viability; risks associated with CTSa™ international operations, including trade and tariff barriers; currency fluctuations and their effects on our results of operations and financial position; changes in performance of equity and debt markets that could affect the valuation of the assets in CTSa™ pension plans and the accounting for pension assets, liabilities and expenses; political and geopolitical risks; rapid technological change in the automotive, communications and computer industries; reliance on key customers; CTSa™ ability to protect its intellectual property; and potential costs and liabilities related to the recent Toyota recall. For more detailed information on the risks and uncertainties associated with CTSa™ business, see the reports CTS files with the Securities and Exchange Commission available at [ http://www.ctscorp.com/investor_relations/investor.htm ]. CTS undertakes no obligation to publicly update its forward-looking statements to reflect new information or events or circumstances that arise after the date hereof, including market or industry changes.