MALVERN, Pa. - Vishay Precision Group, Inc. (NYSE: NYSE:VPG), known for its precision measurement and sensing technologies, has announced the acquisition of Nokra Optische Prueftechnik & Automation GmbH, a German company specializing in precision measuring and testing equipment for the manufacturing sector. The terms of the transaction, which took place today, have not been disclosed.
Saul Reibstein, Chairman of the Board of VPG, expressed satisfaction with the integration of Nokra's products into the VPG portfolio, highlighting the alignment with the company's focus on sensor and precision measurement solutions. Ziv Shoshani, CEO of VPG, added that Nokra's laser-based measuring systems complement VPG's existing KELK measurement and inspection solutions for steel and aluminum rolling mills, as well as the metal processing industry globally.
Nokra's laser-based measurement gauge systems are utilized for precise measurement of metal thickness, flatness, contour, width, or 3D profile during production processes. This acquisition is seen as a strategic move to enhance VPG's product offerings and address the growing need for optimized production and quality control solutions.
KELK, a subsidiary of VPG based in Toronto, Canada, is an ISO 9001:2015 certified organization that designs and manufactures electronic measurement equipment primarily for steel and aluminum rolling mills and mining applications worldwide.
VPG aims to optimize and enhance product performance across various markets with its sensors, weighing solutions, and measurement systems. The acquisition of Nokra is expected to expand VPG's capabilities and reinforce its position in the market for precision measurement technologies.
This news is based on a press release statement from Vishay Precision Group, Inc. The forward-looking statements included in the press release involve risks and uncertainties that could cause actual results to differ materially from those anticipated.
In other recent news, Vishay Precision Group, Inc. (VPG) has reported a mixed bag of sales trends in its second quarter fiscal 2024 earnings call. Despite experiencing softer sales compared to the previous year, the company has managed to maintain a strong balance sheet and solid free cash flow, which are seen as key elements for future growth. VPG's capital allocation strategy includes stock repurchases, and the company is optimistic about reaching its medium-term revenue and margin targets, despite the challenges in the market.
The company is actively pursuing business development initiatives and cost reduction programs, with a particular focus on its advanced sensors segment. VPG expects net revenues of $70 million to $78 million for the third quarter and is hopeful about its three to five-year targets for revenue growth and margin expansion. The company anticipates a recovery in certain end markets by 2025 and a turnaround in the test and measurement segment by the end of this year.
These are the recent developments within the company. However, it's important to note that the sales have decreased compared to the previous year, and orders are mixed across different segments. Despite these challenges, VPG remains optimistic about its future growth, especially with its focus on the advanced sensors segment.
InvestingPro Insights
To complement the news of Vishay Precision Group's (VPG) acquisition of Nokra Optische Prueftechnik & Automation GmbH, recent financial data from InvestingPro offers additional context for investors.
As of the last twelve months ending Q2 2024, VPG reported revenue of $333.52 million, with a gross profit margin of 42.63%. This robust margin suggests that the company maintains strong pricing power in its niche market of precision measurement technologies, which could be further enhanced by the integration of Nokra's laser-based systems.
Despite the strategic acquisition, it's worth noting that VPG has experienced a revenue decline of 8.86% over the same period. This context makes the Nokra acquisition particularly significant, as it may help VPG to counteract this trend by expanding its product portfolio and market reach.
An InvestingPro Tip highlights that VPG's management has been aggressively buying back shares. This could indicate management's confidence in the company's future prospects, including the potential benefits of the Nokra acquisition. Another InvestingPro Tip reveals that VPG holds more cash than debt on its balance sheet, suggesting a strong financial position to support strategic moves like the Nokra purchase without compromising financial stability.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for VPG, providing a deeper understanding of the company's financial health and market position.
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