Vishay Precision Group Inc., a producer of precision sensors and sensor-based systems, has acquired New York-based Dynamic Systems Inc., a specialized provider of dynamic thermal-mechanical test and simulation systems used to develop new metal alloys and optimize production processes, for a purchase price of $41 million, subject to customary adjustments, plus a potential earn out of up to an additional $3 million.
VPG’s CEO Ziv Shoshani said in a statement, “DSI is an established, high margin business, with a strong brand and has the largest installed base of products of its type in the world, according to market estimates. DSI expands our position in the steel market and offers opportunities for growth by leveraging our sales capabilities and market presence, and by expanding DSI’s product line to address new opportunities.”
Over the past three years, DSI achieved average annual sales of $16 million and high EBITDA margins. VPG expects DSI’s Gleeble® Systems to benefit from increasing materials development and research, due to several long-term trends such as efforts to make steel and aluminum lighter and stronger for next-generation applications being developed in the automotive, aerospace, energy, and heavy industrial markets.