Kimball Electronics (KE) M&A announcement summary

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 and India, establishing a global medical CMO platform and supporting U.S. growth.

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

• Helvoet's technical expertise, blue-chip customer base, and complementary capabilities enable cross-selling, larger programs, and vertical integration opportunities.

• Shared values in engineering excellence and vision for scaling U.S. presence support strategic fit.

Financial terms and conditions

• Purchase price of €90 million (approx. $103 million), representing 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

• Synergies expected by leveraging combined customer relationships, technologies, and operational infrastructure.

• Immediate collaboration between teams to port IP and processes to the U.S. facility and pursue larger programs.

• Opportunity for future vertical integration as Helvoet currently outsources electronics manufacturing.

• Combined business expected to unlock value through engineering and manufacturing expertise, capturing near-term demand from existing Helvoet customers.