* Immediately Accretive, Acquisition to Add $64 Million in Annual Sales
* Brings Geographic, Product Synergies to Company's Cannon Division
WHITE PLAINS, N.Y. and SINGAPORE, Aug. 29 /PRNewswire/ -- ITT Industries,
Inc. (NYSE: IIN) today announced that it has signed a definitive agreement to
acquire STX Pte. Ltd. (STX), a wholly-owned subsidiary of San Teh, Ltd. of
Singapore and a leading producer of conductive rubber switches (CRS) that are
used in mobile telephones, computer keyboards, high-end remote control units
and keyless entry systems. The acquisition makes ITT Industries the leading
provider of CRS, serving a rapidly growing global market. The transaction is
subject to San Teh, Ltd. shareholder approval, and customary closing
"This acquisition fits exactly with our strategy to grow ITT Industries'
businesses through acquisitions that add shareholder value," said Travis
Engen, Chairman and Chief Executive of ITT Industries. "In addition to being
immediately accretive, the addition of STX brings complementary products and
market channels which will accelerate the growth of the combined ITT
Industries and STX switch businesses."
STX is headquartered in Singapore and generated 1998 sales of
US$64 million, with primary manufacturing facilities located in the People's
Republic of China. The company provides products to leading worldwide
manufacturers within the mobile communications, transportation and industrial
"STX's geographic base will allow us to strengthen our market position for
all of our switch products in the Asia-Pacific region, building on STX's sales
and manufacturing presence in China," said Gerard Gendron, president of ITT
Industries' Cannon division. "It will also provide us a low-cost source of
CRS products for key customers in North America and Europe, where we already
have well-established sales channels and customer positions."
The company will operate within ITT Industries' Cannon division, in the
company's Connectors & Switches segment. Cannon's existing switch business
has been achieving double-digit revenue and income growth over the last
five years. Primary manufacturing is done in the US, France and Germany, and
with sales offices in every major country worldwide. Cannon's switch business
produces electromechanical switches, CRS, smartcard connectors and
value-added panel and switch assemblies. The acquisition of STX will increase
annual switch sales significantly, and will make ITT Industries the world's
leading producer of CRS. Initial integration efforts will focus on sales and
marketing activities to ensure that the anticipated revenue synergies are
ITT Industries, Cannon division is an international supplier of electronic
components, interconnect systems, switches, information card technology and
high speed structured cabling systems and services.
ITT Industries, Inc. (http://www.ittind.com) is a global engineering and
manufacturing company with leading positions in the markets it serves,
generating 1998 sales of $4.5 billion. ITT Industries is the world's premier
supplier of pumps, systems and services to move and control water and other
fluids. The company is a major supplier of sophisticated military defense
systems, and provides advanced technical and operational services to a broad
range of government agencies. ITT Industries also produces connectors,
switches and cabling used in telecommunications, computing, aerospace and
industrial applications, as well as network services. Further, ITT Industries
makes industrial components for a number of other markets, including
transportation, construction and aerospace. Based in White Plains, NY, ITT
Industries employs approximately 33,000 people around the world.
In addition to the New York Stock Exchange, ITT Industries' common stock
is traded on the Midwest, Pacific, London, Frankfurt and Paris exchanges.
Certain material presented herein consists of forward-looking statements
which involve known and unknown risks, uncertainties and other important
factors that could cause actual results to differ materially from those
expressed in, or implied from, such forward-looking statements. Such factors
include those set forth in Item 1. Business and Item 7. Management's
Discussion and Analysis of Financial Condition and Results of Operations --
Forward-Looking Statements in the ITT Industries, Inc. Form 10-K Annual Report
for the fiscal year ended December 31, 1998, and other of its filings with the
Securities and Exchange Commission.
ITT Industries and its subsidiaries' news releases are available at no
charge via fax and the Internet. For ITT Industries news and information on
the Internet, visit http://www.ittind.com. To receive releases by fax, call
800-758-5804, extension 110006.
SOURCE ITT Industries, Inc.
Web site: http://www.ittind.com
CONTACT: Tom Martin, 914-641-2157 or firstname.lastname@example.org, or
Tom Glover, 914-641-2160 or email@example.com, both of ITT