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METHUEN, MA – Parlex Corp. has entered into a definitive agreement to be acquired by Johnson Electric Holdings for $74.6 million, including assumption of Parlex's debt.
Separately, Parlex said it will sell part of its Methuen, MA, flexible circuit operation to a division of Amphenol Corp. The transition is expected to be completed before year end. No financial terms were disclosed.
Parlex makes flex circuits. Johnson Electric Capital is the investment arm and a wholly-owned subsidiary of Johnson Electric Holdings, which designs and manufactures micro motors and motor systems. The Johnson Electric Group, headquartered in Hong Kong, has annual revenues in excess of US $1.1 billion and employs approximately 33,000 people in 15 countries worldwide.
In a statement, Peter Murphy, president and chief executive, said the company never fully regained its ability to grow following the 2001 downturn. "In the period following the technology sector downturn in 2001, Parlex faced significant financial challenges that has constrained its ability to fund its growth and necessitated a major restructuring. [T]he merger agreement with Johnson Electric is the culmination of that restructuring process.”
The deal includes Parlex’s debt, net of cash, of $27.5 million.
Parlex’s board has unanimously approved the transaction.
Patrick Wang, chairman and chief executive of Johnson Electric Holdings, cited Parlex’s customer base, which he said “overlaps extensively” with Johnson Electric's. "The acquisition of Parlex is an exciting opportunity for Johnson Electric Group to extend its reach and acquire new capabilities in electronics and electronic assemblies, which are becoming an increasingly important factor in the electric motor systems we produce.”
Amphenol is a supplier of military, aerospace and industrial gear.
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