Methode Electronics Inc., a global developer of custom engineered and application-specific products and solutions, announced it has completed the acquisition of Grakon Parent Inc., as previously announced on Aug. 20.
Grakon designs, develops and manufactures advanced lighting systems, controls and components for premier OEM manufacturers in the heavy truck, bus, rail, electric vehicle and powersports markets. Methode funded the total consideration of $420 million with a combination of cash on-hand and proceeds from the company’s amended credit facility. Excluding pre-tax costs related to the transaction, and inclusive of estimated amortization and interest expense, Methode says it expects the acquisition to be accretive to earnings in its current fiscal year ending April 27, 2019.
Methode’s President and CEO, Donald Duda, said, “Grakon’s manufacturing capabilities and products will foster additional innovation within our companies, driving incremental revenue, EPS and cash flow growth and providing strong returns for our shareholders. I am delighted to officially welcome the employees of Grakon to Methode and look forward to the growth we can achieve as one company.”
Grakon has been serving the commercial vehicle industry for more than 40 years. With three facilities in North America, two in Europe and two in Asia, Grakon has more than 1,200 employees, including more than 100 engineers.
Foros acted as financial adviser to Methode. Wachtell, Lipton, Rosen & Katz served as Methode’s outside legal counsel.
Baird acted as financial adviser to Grakon. Kirkland & Ellis LLP served as Grakon’s outside legal counsel.