Standex has successfully completed the acquisition of Minntronix, a privately held company based in South Dakota, for approximately $30 million in cash. The transaction was funded using Standex’s existing cash balance. The acquisition is expected to be accretive to Standex’s earnings in its first year of ownership and deliver a double-digit return on invested capital.
According to Standex’s President and Chief Executive Officer, David Dunbar, the acquisition of Minntronix is a strategic fit that expands their presence in fast-growing end markets, particularly in areas related to 5G, smart grid, and industrial automation. Minntronix’s product line and customer base complement Standex’s existing business, providing opportunities for further growth through key account relationships and cross-selling opportunities. Additionally, the acquisition brings a talented engineering and customer support team, enhancing Standex’s problem-solving capabilities and extending its geographic footprint.
Minntronix specializes in the design and manufacture of customized and standard magnetics components and products, including transformers, inductors, current sensors, coils, chokes, and filters. Their products find applications in various industries, such as cable fiber, smart meters, industrial control and lighting, electric vehicles, and home security.
Lew Tollefson, President, and CEO of Minntronix expressed enthusiasm for joining Standex, emphasizing the opportunities for continued growth and leveraging the broader geographical presence, engineering expertise, and complementary product offerings provided by the global leader.
David Dunbar further highlighted the strategic significance of the acquisition, stating that it strengthens Standex’s competitive advantage by adding scale to their expertise and capabilities in growing markets with favorable long-term trends. The addition of Minntronix aligns with Standex’s portfolio strategy of building higher-margin growth business segments into significant platforms, positioning the company for further success.
The acquisition marks an important milestone for Standex as it continues to expand its market presence and leverage its existing strengths to tap into emerging opportunities in the rapidly evolving industries of 5G, smart grid, and industrial automation.
