COMMUNICATIONS SYSTEMS TO ACQUIRE UK APPARATUS COMPANY
COMMUNICATIONS SYSTEMS TO ACQUIRE UK APPARATUS COMPANY HECTOR, Minn., Jan. 21 /PRNewswire/ -- Communications Systems, Inc.
(NASDAQ: CSII) (CSI) today announced that it has agreed in principle to acquire Austin Taylor Communications Ltd., a Bethesda, Wales U.K. manufacturer of voice and data connecter products primarily for the British telecommunications market.
In the transaction CSI will invest approximately $1,250,000 in Austin Taylor to acquire 100 percent ownership which funds will be used primarily to reduce Austin Taylor's current debt of approximately $5,220,000. The acquisition is conditioned upon Austin Taylor receiving approximately $1,000,000 of additional financing through grants, loans and the purchase of preferred stock by several Welch development agencies. Existing shareholders of Austin Taylor will receive 5,000 shares of CSI's stock plus additional payments based upon future Austin Taylor profits. Austin Taylor began manufacturing for the telecommunications market in the early 1960s. It has become a major supplier to British Telecom and a single source of many products. Austin Taylor's other major customers include GEC-Plessey Telecommunications, Mercury Communications and AT&T Europe and its products are also sold to the European telecommunications market through Anixter, Telcom Products, National Telecomm and other distributors. Austin Taylor's product line consists of British standard line jacks, patch panels, wiring harness assemblies and metal boxes, cabinets and frames for which 1991 revenues were approximately $9,500,000. Unsuccessful diversification efforts into the digital PABX and telephone set market resulted in unprofitable operatings for the last several years and it withdrew from this market during 1991. Austin Taylor currently employs approximately 150 people, down from substantially higher levels, and has a 40,000 square foot facility at its northern Wales location. It is a vertically integrated manufacturer with metal stamping, metal bending, forming, painting, plastic injection molding and pc board assembly capabilities. Curtis A. Sampson, CSI's chairman and CEO, stated: "Austin Taylor provides an excellent base for CSI to increase its penetration of European markets. At present, only 3 percent of CSI's sales are outside North America, and we are anxious to pursue opportunities within the common market as these countries eliminate trade barriers and standardize on modular connector products. Paul Hanson, CSI's vice president of finance, added: "Our intention is for Austin Taylor to continue to manufacture and sell its existing products from its current location. In addition, we will team up with Austin Taylor to explore the potential application of its products in the United States and other existing CSI markets, and use Austin Taylor to manufacture and/or distribute existing CSI products or new products developed jointly in the United Kingdom and Europe." Bill Clarke, Austin Taylor's sales and marketing director, commented: "There is a very high degree of compatibility between CSI and Austin Taylor product areas, and we are confident both parties -- and our customers -- will benefit from our combination of capabilities and resources. CSI's acquisition of Austin Taylor is subject to customary conditions, including the preparation and execution of definitive agreements. It is anticipated that the definitive agreements will be executed in the near future. CSI, headquartered in Hector, is principally engaged in the manufacture and sales of connecting devices for telephone equipment. -0- 1/21/92 /CONTACT: Curtis A. Sampson, Paul N. Hanson or Avis J. Johnson, 612-848-6231, all of Communications Systems/ (CSII) CO: Communications Systems, Inc. ST: Minnesota IN: TLS SU: TNM
AL -- MN003 -- 1710 01/21/92 10:24 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Jan 21, 1992|
|Previous Article:||IMMULOGIC ANNOUNCES PUBLIC OFFERING OF 2 MILLION SHARES OF COMMON STOCK AT $22.75 PER SHARE|
|Next Article:||GENERAL RENT-A-CAR SPONSORS $100,000 PACESETTER AWARD FOR CAREER ENHANCEMENT IN ZEREX SAAB PRO SERIES|