AMHERST, NY – Dec. 31, 2021 — Allied Motion a designer and manufacturer of precision and specialty controlled motion products and solutions for the global market, announced today that it has acquired Spectrum Controls, Inc. (“Spectrum”), an innovator and manufacturer of a wide variety of Industrial I/O and Universal Communications Gateway products.
The purchase price was $70 million, of which $45 million was paid at closing with a combination of $27 million in cash and the remainder in the Company’s common stock at a price of $35.82 per share. The remaining $25 million will be paid in two equal payments in 2022 and 2023 comprised of 50% cash and 50% stock.
“Spectrum has a long history of innovation, partnership, and customized customer fulfillment, and we are excited to welcome the entire Spectrum team to the Allied family. This acquisition is an excellent strategic fit and provides us with a tremendous opportunity to enhance our position as a value-added solutions supplier to the industrial automation and industrial controls market,” commented Dick Warzala, Chairman and CEO.
“In addition, Spectrum enhances our customer base, adds significant engineering resources and has the technology and know-how to provide solutions that meet the system requirements of Functional Safety.”
Bruce Wanta, Founder and President of Spectrum, stated, “Allied has built an impressive organization. We believe that given their strong leadership team and their One Allied culture, we have found the ideal partner to successfully execute on the many str ategic initiatives and opportunities we have in front of us. We look forward to a bright future together.”
Mr. Warzala further added, “We believe we can drive growth by leveraging Spectrum’s strong partner relationships with large industrial automation companies, utilizing their global distribution channels, and benefiting from the continued digital transformation around IIoT, AI and analytics that are driving the increased use of smart factory floor devices.”
In 2022, Spectrum is expected to be accretive to both Allied’s earnings per share and gross margin profile. The acquisition structure includes a tax election that is expected to offset cash taxes by approximately $10 million over the next 15 years.
Founded in 1983 and headquartered in Bellevue, WA, Spectrum designs and manufactures a wide range of highly sophisticated I/O modules, marquee displays, and industrial gateways for broad industrial controls applications through partnerships with PLC manufacturers and distributors.
With approximately 72 employees, Spectrum serves large industrial automation projects and specialty applications domestically and throughout the world, including Europe, Asia, the Americas, and the Middle East.
| For more information visit https://www.spectrumcontrols.com. |
View source version on https://www.businesswire.com/news/home/20211230005292/en/