Keytronic To Acquire Sabre Manufacturing


Provides Sheet Metal Fabrication Capabilities and Expands Customer Base

Spokane Valley, WA – May 28, 2013 — Keytronic Corporation (Nasdaq: KTCC), announced today that it intends to purchase the assets of Sabre Manufacturing for approximately $5.1 million in cash.

With annual revenue of over $7.0 million and approximately 90 employees, Sabre is a sheet metal fabrication company that operates a 66,000 square foot facility near the Keytronic campus in Juarez, Mexico.

“We’re very pleased to announce our plans to acquire Sabre, which enables us to offer metal fabrication directly to our customers, in combination with our plastic molding, PCB assembly, complete product assembly, design engineering and testing engineering services,” said Craig Gates, President and Chief Executive Officer. “This acquisition furthers our strategic focus on providing all the EMS services available from a much larger tier I company, while still bringing the flexibility and high customer service levels of a tier II supplier. We expect a rapid integration of Sabre and have already seen significant interest in our expanded capabilities across both of our customer bases.”

The purchase will be funded by Key Tronic’s available cash and bank credit line. The transaction is anticipated to close in July and to be immediately accretive to earnings.

About Keytronic

Keytronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico and China.  The Company provides its customers full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution.  Its customers include some of the world’s leading original equipment manufacturers.  For more information about Key Tronic visit:

Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all passages containing verbs such as ‘aims, anticipates, believes, estimates, expects, hopes, intends, plans, predicts, projects or targets’ or nouns corresponding to such verbs. Forward-looking statements also include other passages that are primarily relevant to expected future events or that can only be fully evaluated by events that will occur in the future. Forward-looking statements in this release include, without limitation, the Company’s statements regarding its expectations with respect to its intended acquisition of Sabre Manufacturing and its impact on future earnings. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to the future of the global economic environment and its impact on our customers and suppliers, the availability of parts from the supply chain, the accuracy of customers’ forecasts; success of customers’ programs; timing of new programs; success of new-product introductions; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; and the other risks and uncertainties detailed from time to time in the Company’s SEC filings.

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