<PAGE>
SECURITIES AND EXCHANGE COMMISSIONSECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported) February 26, 1997
Methode Electronics, Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
0-2816 36-2090085
(Commission File Number) (I.R.S. Employer Identification Number)
7444 W. Wilson Avenue, Harwood Heights, Illinois 60656
(Address of Principal Executive Offices) (Zip Code)
(708) 867-9600
(Registrant's Telephone Number, Including Area Code)
-------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
Item 2. Acquisition or Disposition of Assets.
On February 26, 1997, Methode Electronics, Inc. signed an agreement to acquire
for $30,000,000 in cash all of the shares of German-based Merit-Elektrik GmbH
and Malta-based Merit Malta Ltd. (Merit Elektrik) subject to regulatory approval
and normal closing conditions. Merit Elektrik is a manufacturer of automotive
switches and has a substantial position in the European automotive switch gear
community and supplies General Motors (Opel), Ford Motor and Volkswagen with
ignition switches, transmission controls, switches and other devices. Malta-
based Merit Elektrik operates modern automated manufacturing facilities with a
recognized European design and tooling capability.
The acquisition is a major commitment to the European automotive community and
the presence of the additional organization assures Methode a strong foothold in
this growing market. Merit Elektrik offers an established functional switch
design capability with recent awards indicating a growing product penetration
and solid customer acceptance. The venture will provide Methode with a stronger
global customer base as well as a complementary, but non-competitive, product
line.
Merit Elektrik provides a beachhead for Methode in continental Europe where
Methode has joined forces with a valued provider to the major auto and truck
producers. It is expected that Merit Elektrik will benefit from Methode's
established products for multi-functional steering column, ergonomic and control
components which can now be supplied through Merit Elektrik more efficiently to
European manufacturers than has been previously possible. Whereas Methode will
add products in the "hidden" functional switches category, the combination
strengthens each company's core competence. It is the objective that Methode's
products will find increased acceptance in both South America and Europe and
Merit Elektrik's products will contribute to an additional penetration into
Methode's current customer base.
Methode will use its current cash balances to complete the purchase of all of
the shares of the non-public Merit Elektrik from its shareholders Gunter Merten,
Jost Merten, Inge Merten and Ute Merten.
The press release issued by Methode on February 26, 1997, is attached hereto as
Exhibit 99.1.
<PAGE>
Item 7. Financial Statements and Exhibits
(c) Exhibits
INDEX TO EXHIBITS
Exhibit
Number Description
- ------- -----------
99.1 Press release dated February 26, 1997
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Methode Electronics, Inc.
-------------------------
(Registrant)
Date February 27, 1997 By
----------------- ------------------------------------
Kevin Hayes, Chief Financial Officer
<PAGE>
EXHIBIT 99.1 -- PRESS RELEASE DATED FEBRUARY 26, 1997
NEWS RELEASE
FOR: Methode Electronics, Inc. CONTACT: Kevin J. Hayes
7444 W. Wilson Ave. Chief Financial Officer
Chicago, IL 60656 (708) 867-9600
METHODE ELECTRONICS, INC. ANNOUNCES
ACQUISITION OF COMMON STOCK OF MERIT ELEKTRIK
FOR IMMEDIATE RELEASE
CHICAGO - February 26 - Methode Electronics, Inc. today announced it
has acquired the common stock of Merit Elektrik of Malta subject to regulatory
approval and normal closing activities. Merit Elektrik is a manufacturer of
automotive switches and has a substantial position in the European automotive
switch gear community and supplies General Motors (Opel), Ford Motor and
Volkswagen with ignition switches, transmission controls, switches and other
devices.
The acquisition is a major commitment to the European automotive
community and the presence of the additional organization assures Methode a
strong foothold in this growing market. Merit Elektrik offers an established
functional switch design capability with recent awards indicating a growing
product penetration and solid customer acceptance. The venture will provide
Methode with a stronger global customer base as well as a complementary, but
non-competitive, product line.
Merit Elektrik features modern automated manufacturing facilities with
a recognized European design and tooling capability.
William J. McGinley, Chairman of Methode, stated, "The partnership
with Merit Elektrik provides a beachhead for Methode in continental Europe where
Methode has joined forces with a valued provider to the major auto and truck
producers. We expect Merit Elektrik to benefit from Methode's established
products for multi-functional steering column, ergonomic and control components
which can be supplied more efficiently to European manufacturers than has been
previously possible. Whereas Methode will add products in the "hidden"
functional switches category, the combination strengthens each company's core
<PAGE>
competence. It is the objective that Methode's products will find increased
acceptance in both South America and Europe and Merit Elektrik's products will
contribute to an additional penetration into Methode's current customer base.
"The Merit Elektrik plants will further implement Methode's philosophy
of decentralized specialization which increasingly requires a combination of
internal capabilities with outside alliances to satisfy the customers'
requirements of source reduction.
"The former Merit Elektrik will operate for the foreseeable future
under the style of Merit Malta Methode to preserve its identity with present
customers.
"The Company intends to file a Form 8-K relating to the
transaction.
"As a final note, William T. Jensen, President of Methode Electronics,
was instrumental in evaluating the opportunities of a combination of Methode
with Merit Elektrik. As previously announced, Mr. Jensen, who has spent nearly
fifty years with Methode, has been on sabbatical since the end of the calendar
year and has now decided that he will retire rather than return in early March
as announced previously. I will assume the additional duties of President of the
Company," Chairman McGinley concluded.
