- Methode Electronics ( NYSE: MEI ) entered into a definitive agreement to launch a recommended public tender offer for all of the outstanding shares of Nordic Lights at an offer price of EUR 6.30/share for total equity value of ~EUR 132M.
- The company expects to fund the purchase with a combination of cash on hand and debt financing under its existing credit facility.
- Nordic Lights, a provider of high-quality lighting solutions for heavy-duty equipment, is a public limited liability company incorporated in Finland with its shares admitted to trading on Nasdaq First North.
- "Methode considers Nordic Lights to be highly complementary to its own existing LED lighting solutions. In addition, the business aligns well with our inorganic growth framework given its focus on engineered solutions for OEMs, its industrial and non-auto transportation market exposure, and its customer and geographic diversity," President & CEO Donald W. Duda commented.
- Excluding pre-tax costs related to the transaction, Methode expects the acquisition to be accretive to earnings and free cash flow on a per share basis in FY24 prior to any potential synergies and inclusive of estimated amortization, purchase accounting adjustments and interest expense.
- The transaction is expected to close in 2H23.
For further details see:
Methode Electronics launches cash offer to acquire Nordic Lights