DOVER ELECTRONICS COMPANY COMPLETES TAX-FREE SPIN-OFF TO FORM DOVATRON INTERNATIONAL INC.
BINGHAMTON, N.Y., May 24 /PRNewswire/ -- DOVatron International Inc. (NASDAQ: DOVT) announced today the completion of its separation from Dover Corporation (NYSE: DOV). The tax-free spin-off was effected through a distribution of 100 percent of the shares of DOVatron International to shareholders of Dover Corporation. DOVatron International will be structured as a holding company comprising four separate and distinct business units which provide a full spectrum of state-of-the-art electronics manufacturing service technologies on a global basis. DOVatron has been a separate company within the Dover Technologies (DTI) segment of Dover Corporation since 1987. Operating as a stand- alone Dover business unit for more than five years, DOVatron has established a solid financial track record for sales growth and profitability. Sales from continuing operations in 1992 were $101 million with net income of $4.6 million. This represents an increase of more than 100 percent over 1991 sales, partly due to the purchase of a new facility at the beginning of 1992. DOVatron International's subsidiaries, DOVatron, Inc., DOVatron Singapore Pte. Ltd., and DOVatron Ireland Limited provide contract electronics manufacturing (CEM) services worldwide with wholly owned and affiliated high volume manufacturing facilities in the U.S., European Common Market and the Pacific Rim. DOVatron's CEM business units encompass more than 20 high-volume automated manufacturing lines and generate over 90 percent of the company's revenue. With worldwide facilities and a global customer base, the company is well positioned to take advantage of the attractive growth rate for outsourcing of electronics assembly in a market that is projected to double to $1.4 trillion by the year 2000. The company's 12-month backlog has increased from $83 million at the end of 1992 to $106 million on March 31, 1993. In addition to providing CEM services, DOVatron International manufactures and distributes precision-milled tooling templates through IRI division, the market leader in chemical and laser etched metal masks and stencils. IRI has manufacturing facilities in New York, California and Singapore. Through its Cencorp subsidiary, also a market leader, DOVatron provides electronic circuits depaneling machine tools. Both of these businesses market their products to the high volume PCB assembly industry. Finally, the company manufactures its own line of small form factor circuits for the embedded control industry under the brand name "E.S.P.," which are marketed to OEMs in North America and Europe. Ron Budacz, chairman and CEO, commented, "DOVatron will continue to add value to its customers and shareholders with world-class products and services. The company's financial and operational wherewithal positions us to capitalize on the rapidly growing electronics market." DOVatron International, Inc. serves the electronics industry through its four strategically located ISO 9000-certified contract electronics manufacturing divisions. In addition, the company designs, manufactures and markets to the industry through three other autonomous business units. -0- 5/24/93 /CONTACT: Carl R. Vertuca, Jr., chief financial officer of DOVatron International, Inc., 303-772-5933/ (DOVT)
CO: DOVatron International Inc. ST: New York IN: CPR SU:
TM -- NY007 -- 1532 05/24/93 08:50 EDT
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|Date:||May 24, 1993|
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