Winland Electronics has sold its electronics manufacturing services operation to Nortech Systems
Lincoln International, a leading global mid-market investment bank, continues its significant involvement in the EMS industry with the sale of the Electronics Manufacturing Services (“EMS”) operation of Winland Electronics Inc. (AMEX: WEX) (“Winland” or the Company) to Nortech Systems Inc. (NASDAQ: NSYS) (“Nortech”), which occurred at the beginning of the new year.
Winland’s EMS operation designs and manufactures printed circuit board assemblies and higher-level complete box build assemblies, primarily for original equipment manufacturers (OEMs) in markets including medical, industrial, transportation and scientific instrumentation. Nortech purchased the assets and intellectual property associated with Winland’s EMS operation and is continuing the existing Mankato, MN operation by signing a long term lease for Winland’s 58,000-square-foot facility comprised of manufacturing, warehouse and office space.
“We’re pleased to expand our world-class manufacturing capabilities, including adding valuable new capacity for printed circuit board assemblies,” said Mike Degen, Nortech’s president and CEO. “Winland had developed a reputation for excellence in design and manufacturing, and together we’ll advance that success going forward.” Lincoln International acted as the exclusive financial advisor to the Company, working with the senior management team and the Company’s board of directors throughout the sale process. This included providing advisory expertise and assisting in the negotiation and due diligence phases of the transaction.
Jack Calderon a Managing Director at Lincoln International and the head of its Global Electronics Group commented, “This is a positive result for Winland and Nortech. The EMS division was not operating profitably for Winland but provides Nortech the additional capacity it required. The transaction keeps in place the facility and workforce with continuing production to Winland’s EMS customers. The transaction will also allow Winland to focus on its proprietary products.”
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