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New Albany-headquartered Commercial Vehicle Group Inc. has acquired substantially all of the assets and certain liabilities of First Source Electronics LLC, an electronics systems integrator in Elkridge, Maryland, for as much as $44.75 million, subject to certain targets. CVG expects the strategic acquisition to contribute to its long-term growth and allow it to enter the warehouse automation market.

FSE, a provider of electrical systems integration and manufacturing services, serves a diverse range of market segments including industrials, transportation and military. The company’s trailing 12 month sales as of June 30, 2019, was approximately $46 million. The transaction is expected to be accretive to operating income and earnings per share in year one.

For the transaction, $34 million was due at closing, with the balance due in 12, 18 and 36 months, subject to meeting certain targets. The deal was funded with domestic cash on hand and $2 million available under CVG’s revolving credit facility.

In addition, CVG has amended its third amended and restated loan and security agreement, upsizing the revolving credit facility to $90 million from $65 million to provide additional liquidity. The upsize was made possible, in part, by higher sales and CVG’s continued focus on efficient operations, including cost control.

“The proliferation of digitalization, connectivity and other power and data applications present meaningful growth opportunities for CVG,” CVG President and CEO Patrick Miller said, in a statement. “FSE strengthens our competitive positioning to take advantage of these dynamic trends, complementing our high-complexity, low-to-medium volume electrical business.”

CVG is a supplier of electrical wire harnesses, seating systems and a full range of other cab related products for the global commercial vehicle markets.