Vishay Announces Intention To Spin Off Measurements & Foil Resistor Businesses To Stockholders
Vishay Intertechnology, Inc. announced that it intends to spin-off its measurements and foil resistor businesses into an independent, publicly-traded company to be named Vishay Precision Group, Inc. The spin-off is expected to take the form of a tax-free stock dividend to Vishay’s stockholders and it is anticipated that holders of Vishay common stock will receive common stock of Vishay Precision Group and holders of Vishay Class B common stock will receive Class B common stock of Vishay Precision Group. Vishay has not yet finalized details of the spin-off.
Vishay’s Board, assisted by independent financial and legal advisors, believes that Vishay Precision Group will have enhanced potential as a stand-alone company as it is not a core component of Vishay’s overall operations, in terms of products, technology, manufacturing processes, markets and customers.
The spin-off would enable the management teams of both companies to better focus on the unique issues facing their respective businesses and permit each company to pursue its own business plan, resource allocation and growth strategies, as well as attract the best personnel through compensation that is more closely tied to the performance of each company. If the spin-off is completed, Vishay is expected to be a more competitive, pure-play discrete electronic components company.
"The separation of our measurements and foil resistor businesses into a stand-alone, publicly-traded company is a natural evolution for Vishay," said Dr. Felix Zandman, Executive Chairman of the Board and Chief Technical and Business Development Officer, and Dr. Gerald Paul, President and Chief Executive Officer of Vishay. "With this separation, Vishay Precision Group will have more autonomy and flexibility to allocate resources for its future growth, and investors will have better clarity into the financial, market and business dynamics of the measurements and foil resistor businesses, which have not been fully realized as part of the larger Vishay organization. Upon completion of this transaction, Vishay will strengthen its focus on growing its core businesses and pursuing its strategic plan to strengthen its position as a global technology leader in discrete semiconductors and passive components to the benefit of all stakeholders."