Fort Capital Partners is pleased to announce that Pacific Insight Electronics Corp. (TSX:PIH) (“Pacific Insight” or the “Company”) has entered into a definitive agreement under which Methode Electronics Inc. (NYSE:MEI) (“Methode”) will purchase all of the outstanding shares of Pacific Insight in an all-cash transaction valued at approximately $144 million.
Under the arrangement, each Pacific Insight common share will be acquired for a cash purchase price of CAD$18.50. This represents a premium of 76% based on the closing price Pacific Insight on the TSX on July 31, 2017 and a 79% premium based on Pacific Insight’ s 20-day VWAP.
Pacific Insight designs, develops and manufactures LED lighting, electronic control module and wire harnesses products for the automotive, commercial vehicle and specialty markets globally. The Company’s innovative line of products have attracted global OEM’s and Tier 1 and Tier 2 customers such as Ford, Tesla, GM, Daimler, Caterpillar and Borg Warner. Since shifting its strategic focus on high value interior LED products in 2012, Pacific Insight has experienced significant revenue and profit growth and has more than doubled its revenue over the last two fiscal years. The Company was founded in 1984 in Prince George, BC by Stuart Ross and currently has approximately 1,100 employees across all of its operations and offices in Canada, Mexico and the United States.
The transaction, which remains subject to shareholder approval, has been unanimously approved by the board of Pacific Insight. Directors and officers owning approximately 29.1% of Pacific Insight’s outstanding shares have entered into agreements to vote in favour of the transaction.
Fort Capital Partners is acting as financial advisor to Pacific Insight on the transaction.