LISLE, IL -- Koch Industries will buy Molex in a deal worth some $7.2 billion. Molex is best-known as a designer and manufacturer of various types of board connectors, and also builds flex circuits and PCB assemblies.

The deal has been approved by both company's boards and is expected to close by year-end. Upon completion, Molex will become a standalone unit of Koch Industries and will continue to be run by the company's current management.

"After 75 years this was a difficult decision, but our board of directors and our family believe that this transaction, which follows a diligent and thorough review process by the board, provides outstanding benefits for all our stakeholders. Importantly, our shareholders will receive a significant premium and compelling value for their holdings. The transaction is expected to provide substantial opportunities for our worldwide employees, many of whom have spent much of their working lives at Molex and are responsible for the company's long term success," said Fred Krehbiel, co-chairman of the Molex board, in a statement.

Molex will retain its headquarters in suburban Chicago.

The companies did not comment on how the Koch Industries acquisition might impact Molex's pending purchase of FCT Electronics.

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Tags: Molex, Koch Industries, connectors, flex circuits, PCB