A longtime Minnetonka-based circuit board manufacturer will be acquired by a public Toronto-based electronics supplier.
Canada’s Firan Technology Group Corp. (Toronto Stock Exchange: FTG) announced this week that it signed an agreement to wholly acquire Holaday Circuits, a producer of high-tech circuit boards serving the aerospace and defense industries.
FTG, which supplies electronic products and aviation systems for those same markets, will pay about $17.6 million in the deal. An earn-out provision of up to $4.43 million is also possible, depending on future performance, according to the press release.
Though the acquisition is still subject to closing conditions, the deal is expected to close during the first quarter of 2023.
Founded in 1966, Holaday Circuits reported annual sales of more than $29 million prior to the pandemic. That figure dropped to $22 million during the pandemic, the press release said.
The acquisition is intended to “complement” FTG’s existing operations, add customers and expand its market share in the aerospace and defense markets, FTG President and CEO Brad Bourne said in the release. FTG recently also announced it would acquire another U.S. circuit board manufacturer, Haverhill, Mass.-based IMI, Inc., which serves in the same industries.
The Holaday Circuits business will continue to operate in its current facility, Bourne added. The company is located near the intersection of Highways US-212 and US-169 and Boston Scientific’s Minnetonka campus.
Holaday Circuits was previously run by Marshall Lewis, who served as CEO and president. After he recently died, “it was time for an ownership change at Holaday,” said Dennis Pulanco, Holaday’s executive vice president, in a press statement.
Wipfli Corporate Finance Advisors acted as the exclusive financial adviser to Holaday in the deal. Messerli Kramer acted as the company’s legal counsel.
