Methode Electronics, Inc. recently announced that it has entered into a definitive agreement to acquire Grakon Parent, Inc., a leading provider of advanced lighting systems, controls, and components for the heavy truck, bus, rail, electric vehicle, and power sports markets. Grakon’s annual revenue is estimated at $159 million, with earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately $41 million.
Grakon’s top 10 commercial vehicle customers have an average tenure of over 19 years, with its newest customer being Tesla. The company operates three facilities in North America, two in Europe, and two in Asia, with over 1,200 employees. According to Methode’s President and Chief Executive Officer, Donald W. Duda, “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 agreement is subject to typical closing conditions, including the expiration of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The transaction is expected to close in September. Methode anticipates funding the acquisition with approximately $420 million via a combination of cash-on-hand and committed debt financing.
Methode is a global company with manufacturing, design, and testing facilities in 14 countries, including the United States. The Chicago, Illinois-based company designs and manufactures electrical, electronic, wireless, sensing, and optical components and systems.
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