Kessler-Ellis Products, or KEP Marine, was recently acquired by Sparton Corp. and its subsidiary Sparton IED LLC.
The transaction was completed Jan. 21.
Founded in 1960, KEP Marine’s displays, computers and peripherals will be consolidated into the Aydin Displays facility in Birdsboro, Pa.
The addition of KEP Marine meets the criteria of our growth strategy by growing our ruggedized electronics platform with additional ruggedized display and industrial computers in the harsh and demanding marine market sector, diversifying our customer base and increasing utilization of our existing assets,” Sparton president and CEO Cary Wood said in a statement.
“Additionally, KEP Marine brings solid, long-term customer relationships that will benefit from Sparton’s expanded list of service offerings,” Wood said.
“We are pleased to add KEP Marine into Aydin Displays, allowing us to further enhance our market position in the marine market,” Aydin Displays general manager Art Mengel said. “In the coming months we will transition KEP’s customers to Birdsboro with an orderly and seamless approach, using contemporary tools such as Sparton’s new product introduction and advanced product quality planning processes.”
“This tuck-in acquisition is a great example of our strategy to maximize existing assets while expanding our ruggedized electronics product platform,” Wood said. “Since there will not be an addition of significant fixed overhead in Birdsboro related to this transaction, we expect KEP Marine’s revenue to enhance thec manufacturing and design services segment EBITDA. Coupled with the IED acquisition in December, we expect that Aydin Displays’ revenue will increase by 30 percent and that the combined acquisitions will be accretive to earnings within the next nine to 12 months once transitioning activities are completed.”