Kimball Electronics (KE) investor relations material

Deal rationale and strategic fit

• Acquisition of Helvoet Polymer Technologies expands medical manufacturing capabilities, especially in microfluidics, diagnostics, and drug delivery, and deepens relationships with healthcare customers.

• Strengthens presence in Europe, adds production facilities in India, and accelerates U.S. growth, establishing a global medical CMO platform.

• Aligns with a multi-year strategy to focus on medical manufacturing, divest non-core assets, and build a differentiated global medical CMO platform.

• Helvoet's technical expertise and blue-chip customer base complement existing operations, enabling pursuit of larger and more complex programs.

• Minimal customer overlap creates additive growth and cross-selling opportunities.

Financial terms and conditions

• Purchase price of €90 million (approx. $103 million), about 9x expected 2026 adjusted EBITDA.

• Funded through a mix of cash and available borrowing capacity; pro forma leverage remains consistent with capital allocation priorities.

• Transaction closed on July 1, 2026.

• Helvoet's 2025 revenue was approximately $56 million, with an EBITDA margin in the mid-teens.

Synergies and expected cost savings

• Immediate focus on unlocking customer and operational synergies, leveraging technologies, customer relationships, and operational infrastructure.

• Cross-selling and expanded program opportunities expected due to complementary customer bases.

• Potential for vertical integration as Helvoet currently outsources electronics manufacturing.

• Combined business expected to leverage U.S. manufacturing to capture near-term demand from existing Helvoet customers.