Israeli Eltek sells its share in Kubatronik-Leiterplatten
28 December, 2016
German Kubatronik produces prototypes of advanced PCB’s. Eltek’s CEO commented: “Kubatrunik's business has failed to pick up and it has drawn significant resources”
Israeli PCB manufacturer, Eltek is ending selling its share in German Kubatronik. The partnership between the two companies started in 2002. At the time, Eltek acquired 76% of the german company’s shares. Last week, Eltek aanounced the sale of its share in Kubatronik to the company’s founder and second partner, Alois Kubat. German Kubatronik produces advanced PCB prototypes. The company specializes in the production of multi layered high density interconnect PCB’s in very small quantities.
In consideration for the sale, Eltek shall be entitled to contingent consideration equal to 20% of Kubatronik’s net profit in 2017, and 10% of Kubatronik’s net profit in each of 2018 and 2019. Eltek and Kubatronik further agreed, that until the end of 2017 they shall offer a 10% discount on sales to one another of their corresponding products and pay a 10% commission on sales each party effects to customers introduced by the other, as applicable.
In addition, during this period, Kubatronik shall continue to manage Eltek Europe GmbH, and Mr. Avi Gal shall continue to serve as Kubatronik’s CEO, on a part-time basis. Following consummation of the transaction – expected to happen by the end on 2016 – Eltek will recognise a loss of 675,000$.
Mr. Yitzhak Nissan, Chairman of the Board and Chief Executive Officer, commented: “During the last several years Kubatrunik’s [sic] business has failed to pick up and it has drawn significant resources from Eltek. The sale of Kubatronik will allow us to focus on our continued development of advanced technological solutions and is expected, in the long run, to positively impact our financial results.”
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