ITT Industries to acquire C&K Components

Assembly Automation

ISSN: 0144-5154

Article publication date: 1 December 2000

865

Keywords

Citation

(2000), "ITT Industries to acquire C&K Components", Assembly Automation, Vol. 20 No. 4. https://doi.org/10.1108/aa.2000.03320dab.004

Publisher

:

Emerald Group Publishing Limited

Copyright © 2000, MCB UP Limited


ITT Industries to acquire C&K Components

ITT Industries to acquire C&K Components

Keywords: Switch gear, Manufacturing

ITT Industries, Inc. (NYSE: IIN) has announced that it has signed an agreement to acquire C&K Components, Inc., a privately held worldwide leader in the design and manufacture of switches for the telecommunications, computer and electronic equipment markets. The acquisition is valued at approximately $117 million, after accounting for cash and debt in the company to be acquired. With the acquisition of C&K, ITT Industries will become the largest switch manufacturer in the world. IIT is already the world's largest manufacturer of keypads, and a leading producer of high-end electromechanical switches, electronic interconnect systems, smartcard connectors, high speed/high-bandwidth network systems and services, and value-added panel and switch assemblies. The transaction is expected to close within 60 days, pending regulatory approval and customary closing conditions.

"The acquisition of C&K is consistent with our strategy of expanding our footprint in higher-growth, profitable markets", said Travis Engen, chairman and chief executive of ITT Industries. "We have been growing rapidly in the $3.4 billion worldwide switch market, most notably through our acquisition last year of San Teh's keypad business. C&K now elevates us to a leadership position in this arena. In addition, C&K's solid financial performance is expected to add to the profitability of our business, with positive contribution to ITT's earnings per share in 2001."

Gerard Gendron, president of ITT Industries' Cannon connectors and switches business, added that the acquisition is a great fit for ITT's existing business.

"It will result in increased global reach, additional breadth in the company's customized switch portfolio and the opportunity to merchandise existing lines through C&K' s strong distribution channels", Gendron said.

Cannon's switch sales are currently strongest in Europe and Asia Pacific. C&K's sales are primarily in North America, where it also enjoys the number one or number two position with three of the top five distributors.

"Cannon has a great track record of providing innovative, custom switch solutions, while C&K has a broad line of switches", Gendron said. "Now customers will be able to rely on us as the strongest source for both needs. Adding C&K's strong brand and broad switch offering to our portfolio is especially important since we estimate we will now have products to serve approximately 80 per cent of the available worldwide switch market".

Founded in 1957, C&K is headquartered in Watertown, Massachusetts. The company employs 1,300 worldwide with manufacturing in Newton, Massachusetts; Kettering, UK; and San Jose, Costa Rica. The company specializes in toggle, rocker, pushbutton, switchlock, snap-action and slide switches.

"This is a positive move for both C&K and ITT", said Jerry Brady, C&K's CEO and president. "C&K shareholders are well-served and ITT is getting a business with significant growth opportunities".

C&K will operate as part of the company's Cannon division and be included in the financial results of ITT's Connectors & Switches segment. ITT Industries' Cannon division is an international supplier of electronic components, including interconnect systems, switches, information card technology and high speed/high-bandwidth network systems and services. ITT's existing switch business has been achieving double digit revenue and income growth over the last five years, with primary manufacturing in the USA, France, Germany and China, and with sales offices in every major country in the world. ITT is the world's leading producer of keypads for high-end remote controls, mobile phones and computers.

ITT Industries, Inc. (www.ittind.com) supplies advanced technology products and services in key markets including: electronic interconnects and switches; defense communication, opto-electronics, information technology and services; fluid and water management and speciality products. Headquartered in White Plains, NY, the company generated $4.6 billion in 1999 sales, and employs approximately 38,000 people around the world.

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