PHILADELPHIA (AP) — Electronic components maker Technitrol Inc. on Tuesday said it agreed to acquire Sonion A/S, a producer of components for hearing aids and other audio equipment, for about $385 million.
The acquisition will be financed through a new credit facility and cash on hand. Closing is expected before the end of February, Technitrol said.
Denmark-based Sonion employs about 4,900 people and posted revenue of about $180 million in 2007.
Technitrol said it plans to keep Sonion's current management and professional personnel largely in place.
Technitrol expects the acquisition will initially boost its earnings before interest, taxes, depreciation and amortization, but reduce earnings per share for part of the first year, partially as a result of interest and amortization expenses.
Technitrol said it expects Sonion to add about 25 cents per share to earnings next year.
Sonion's hearing instrument components business, which accounted for about 68 percent of its 2007 revenue, will become a separate product division of Technitrol's electronic components business.
Sonion's mobile terminal components business, which represented 32 percent of 2007 revenue, will be integrated into an existing division, the company said.
Separately, Technitrol said it reached an agreement with JPMorgan Chase Bank NA and J.P. Morgan Securities Inc. for a $200 million senior term loan facility and a $300 million senior revolving credit facility.
Proceeds will be used for the Sonion acquisition and for other corporate purposes. The credit facilities are expected to close on or before Feb. 28.
Shares of Technitrol fell 92 cents, or 3.5 percent, to end Tuesday's trading at $25.05.
