Andrew To Acquire EMS Wireless
Under the agreement, Andrew will pay $50.5 million in cash for EMS Wireless, a designer and manufacturer of base station antennas and repeaters for cellular networks in North America. Its customers include the major wireless operators in the U.S.
"EMS Wireless and its employees have a successful track record in innovation and customer responsiveness, and their addition to Andrew will deliver compelling strategic and financial benefits," said John DeSana, group president, Antenna and Cable Products Segment, Andrew Corporation. "EMS Wireless will strengthen our relationships with key customers and extend our leadership position in wireless subsystems."
EMS Wireless had revenues of $28.5 million for the first half of 2006. It employs approximately 200 people in Norcross, Ga., and Curitiba, Brazil. The transaction is expected to close within 30 to 60 days and be slightly accretive to earnings in fiscal 2007. Andrew expects to achieve $5 million to $10 million annually in synergies and reduced corporate spending beginning in fiscal 2007.
"We are very proud of our Wireless division and its remarkable achievements over the past 13 years," said Paul Domorski, president and chief executive officer, EMS Technologies. "I credit our highly talented personnel with building the EMS Wireless cellular and PCS base station antenna business. Meanwhile, the industry is consolidating rapidly and greater scale is very important. We believe EMS Wireless and its dedicated employees will have a better future as part of a larger organization, such as Andrew, that is less affected by swings in sales of particular products and has a wider array of products to offer to wireless carriers. For these reasons, we think Andrew Corporation is the perfect match."
SOURCE: Andrew Corporation