Kimball Electronics (Nasdaq: KE) acquires medical CDMO Helvoet for €90M
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Kimball Electronics entered into a definitive Share Purchase Agreement to acquire Helvoet Polymer Technologies B.V. and Helvoet Rubber & Plastics Technologies (India) Pvt. Ltd. for a cash purchase price of approximately €90 million, or about $103 million, subject to working capital adjustments.
About €1.8 million of the price is held in escrow to secure the seller’s obligations. The deal closed on July 1, 2026 and was funded with Kimball’s cash and existing credit lines. Helvoet generated approximately $56 million of revenue in calendar 2025 with an EBITDA margin in the mid-teens, and over 70% of revenue from medical customers. The purchase price represents roughly 9x estimated adjusted EBITDA for 2026 and is expected to be accretive to Kimball’s fiscal 2027 adjusted earnings, increasing sales in its medical vertical in the low double-digit range.
Positive
- Accretive, strategic acquisition: Kimball Electronics is acquiring Helvoet for approximately €90 million (about $103 million), at roughly 9x estimated 2026 adjusted EBITDA, and expects the deal to be accretive to fiscal 2027 adjusted earnings while lifting medical-vertical sales in the low double-digit range.
Negative
- None.
Insights
Kimball makes a sizable, earnings-accretive move deeper into medical CDMO.
Kimball Electronics is acquiring Helvoet for about €90 million (roughly $103 million), valuing the target at roughly 9x estimated adjusted EBITDA for calendar 2026. Funding comes from cash and existing credit lines, keeping pro forma leverage aligned with stated capital priorities.
Helvoet produced approximately $56 million of revenue in calendar 2025 with an EBITDA margin in the mid-teens, and more than 70% of revenue from medical customers. This meaningfully expands Kimball’s medical exposure, adds European and Indian capacity, and connects to its new Indianapolis facility.
The transaction is expected to be accretive to fiscal 2027 adjusted earnings and to increase sales in Kimball’s medical vertical in the low double-digit range. Integration execution, customer retention, and realizing any operational synergies will be key areas for future disclosures to clarify.
8-K Event Classification
3 items: 1.01, 7.01, 9.01
3 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Purchase price: €90 million (about $103 million)
Escrow amount: €1.8 million
Revenue: $56 million
+3 more
6 metrics
Purchase price
€90 million (about $103 million)
Cash consideration for Helvoet acquisition, subject to adjustments
Escrow amount
€1.8 million
Portion of purchase price held in escrow to secure seller obligations
Revenue
$56 million
Helvoet revenue in calendar 2025
EBITDA margin
mid-teens
Helvoet EBITDA margin rate in calendar 2025
Medical revenue mix
over 70%
Share of Helvoet revenue from medical customers in 2025
Valuation multiple
9x estimated adjusted EBITDA
Multiple on Helvoet’s estimated adjusted EBITDA for calendar 2026
Key Terms
Share Purchase Agreement, Contract Development and Manufacturing Organization (CDMO), EBITDA margin, pro forma leverage, +1 more
5 terms
Contract Development and Manufacturing Organization (CDMO) financial
"Helvoet Polymer Technologies B.V. (“Helvoet”), a Contract Development and Manufacturing Organization (CDMO), based in Europe"
A contract development and manufacturing organization (CDMO) is a company that develops and produces drugs, vaccines or other medical products for other firms, handling steps from formulation and testing to large-scale manufacturing and quality control. Investors care because CDMOs function like outsourced specialized factories and development partners: their revenue grows when many clients need production capacity or development expertise, so their performance signals broader industry demand and is tied to regulatory approvals and client programs.
EBITDA margin financial
"In calendar 2025, revenue totaled approximately $56 million with an EBITDA margin rate in the mid-teens."
EBITDA margin is the share of each dollar of sales that a company keeps as operating cash profit before interest, taxes, and accounting for equipment wear and long-term investments. Think of it like the cash a store has left from every sale after paying day-to-day running costs but before paying rent, loan interest or replacing old machinery. Investors use it to compare core profitability and operational efficiency across companies by removing financing and accounting differences.
pro forma leverage financial
"Pro forma leverage following the close remains consistent with the capital allocation priorities of Kimball."
Pro forma leverage is an adjusted measure of a company’s debt level compared with its earnings or cash flow after accounting for planned or one‑time changes, such as acquisitions, asset sales, or debt repayment. It matters to investors because it shows the company’s likely financial burden and flexibility once those events occur, much like seeing your mortgage-to-income ratio after you factor in a projected raise or new loan. This helps assess default risk and capacity for future investments or dividends.
escrow account financial
"Approximately €1.8 million of the cash purchase price ... will be held in an escrow account after the closing"
An escrow account is a neutral holding account run by an independent third party where cash, shares, or documents are kept until specific contract conditions are met — like a referee holding the ball until both teams agree the play is fair. Investors care because escrows reduce counterparty risk in deals (mergers, stock purchases, property transactions), ensuring payments or assets are released only when agreed terms are satisfied.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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) June 26, 2026
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (Section 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Section 240.12b-2 of this chapter).
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 1.01 Entry into a Material Definitive Agreement
On June 26, 2026 Kimball Electronics, Inc., acting through its related wholly-owned subsidiaries (the “Company”), entered into a definitive agreement to acquire the shares of Helvoet Polymer Technologies B.V. and Helvoet Rubber & Plastics Technologies (India) Pvt. Ltd. (collectively referred to as “Helvoet”) from Hydratec Industries N.V. (the “Seller”). The acquisition closed on July 1, 2026.
The Company paid a cash purchase price of approximately of €90 million, or approximately $103 million. The transaction price is subject to certain post-closing working capital adjustments. Approximately €1.8 million of the cash purchase price otherwise payable to the Seller at the closing will be held in an escrow account after the closing to provide security for the fulfillment of the Seller’s obligations towards the Company pursuant to the Share Purchase Agreement. The acquisition was funded with a combination of the Company’s cash and existing lines of credit. The Share Purchase Agreement contains representations, warranties, indemnification provisions, termination provisions, and other clauses and provisions usual and customary for agreements of this type.
The foregoing description of the Share Purchase Agreement does not purport to be complete and is qualified by its entirety by reference to the full text of the Share Purchase Agreement, which is attached hereto as Exhibit 2.1 and is incorporated herein by reference.
Item 7.01 Regulation FD
On July 1, 2026, the Company issued a press release announcing the acquisition of Helvoet. The Company has scheduled a webcast on Wednesday, July 1, 2026 at 9 am Eastern Time to provide additional information and answer questions related to the acquisition. The Company’s press release is attached as Exhibit 99.1.
The information in Item 7.01 of this Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Form 8-K shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or under the Securities Exchange Act of 1934, as amended, except as shall otherwise be expressly set forth by specific reference in such filing.
Forward-Looking Statements
Certain statements contained within this document are considered forward-looking under the Private Securities Litigation Reform Act of 1995. The statements may be identified by the use of words such as “expect,” “should,” “goal,” “predict,” “will,” “future,” “optimistic,” “confident,” and “believe.” Undue reliance should not be placed on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. These forward-looking statements are subject to risks and uncertainties including, without limitation, global economic conditions, geopolitical environment and conflicts such as war, global health emergencies, availability or cost of raw materials and components, tariffs and other trade barriers, foreign exchange rate fluctuations, and our ability to convert new business opportunities into customers and revenue. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the company are contained in its Annual Report on Form 10-K for the year ended June 30, 2025.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
The following exhibits are filed as part of this report:
| Exhibit | ||||||||
| Number | Description | |||||||
2.1(a)(b) | Share Purchase Agreement of Helvoet Polymer Technologies B.V. and Helvoet Rubber & Plastics Technologies (India) Pvt. Ltd. between Hydratec Industries N.V., as Seller, and Kimball Electronics Netherlands, B.V., a wholly owned subsidiary of Kimball Electronics, Inc., as Purchaser, dated as of June 26, 2026 | |||||||
| 99.1 | Press Release dated July 1, 2026 | |||||||
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL) | |||||||
(a) Certain schedules and annexes have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Registrant will supplementally furnish any of the omitted schedules or annexes to the Securities and Exchange Commission upon request.
(b) Certain information contained in Exhibit 2.1 has been excluded pursuant to Regulation S-K Item 601(b)(2) because it is both (1) not material and (2) of the type that the Company treats as private or confidential. The Registrant will supplementally furnish a copy of the unredacted exhibit to the Securities and Exchange Commission upon request; provided, however, that the Registrant may request confidential treatment.
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.
| KIMBALL ELECTRONICS, INC. | |||||
| By: | /s/ Jana T. Croom | ||||
| JANA T. CROOM Chief Financial Officer | |||||
Date: July 1, 2026
Exhibit 99.1
KIMBALL ELECTRONICS ACQUIRES EUROPEAN-BASED MEDICAL CDMO,
HELVOET POLYMER TECHNOLOGIES B.V.
•Helvoet is an advanced medical CDMO specializing in highly automated micro-molding and precision injection molding for microfluidics, diagnostics, and drug delivery applications
•Acquisition establishes a global medical CMO platform by expanding the Kimball manufacturing footprint in Europe while adding production facilities in India
•Transaction is expected to be accretive to fiscal 2027 adjusted earnings, increasing sales in the Kimball medical vertical in the low double-digit range
•Helvoet customer base includes blue-chip medical companies complementary to the Kimball portfolio, creating opportunities for expanded program wins and possible vertical integration
•Kimball manufacturing facility in Indianapolis positions the combined business to capture near-term U.S. demand from existing Helvoet customers
•Management to host a conference call and webcast on Wednesday, July 1st at 9:00 AM ET
JASPER, Ind.--(BUSINESS WIRE)-- Kimball Electronics, Inc. (Nasdaq: KE) today announced the Company acquired Helvoet Polymer Technologies B.V. (“Helvoet”), a Contract Development and Manufacturing Organization (CDMO), based in Europe and with operations in India focused on microfluidics, diagnostics, and drug delivery.
The transaction was valued at a purchase price of €90 million (excluding working capital, other customary adjustments, and acquisition-related costs), or approximately $103 million, representing approximately 9x estimated adjusted EBITDA for Helvoet in calendar 2026. Kimball funded the acquisition through a combination of cash and available borrowing capacity on existing lines of credit. Pro forma leverage following the close remains consistent with the capital allocation priorities of Kimball.
Commenting on today’s announcement, Richard D. Phillips, Chief Executive Officer of Kimball Electronics, stated, “Helvoet is exactly the type of acquisition we’ve been building toward, a highly specialized medical CDMO with comprehensive capabilities in microfluidics, diagnostics, and drug delivery, serving blue-chip customers in the fastest-growing segments of healthcare. The acquisition is central to our strategy of establishing Kimball as a true global medical CMO platform with a strengthened presence in Europe, access to the India market, and a clear path for accelerating growth in the U.S. by leveraging our new manufacturing facility in Indianapolis.”
Mr. Phillips continued, “Today’s announcement is another meaningful step in our journey to expand our CMO capabilities and strategically position the Company with an increased presence and penetration in the medical industry. Over the past three years, we have made deliberate decisions that involved divesting non-core assets, streamlining our network, and strengthening the balance sheet. We are now leveraging that strength with the acquisition of a high-quality business at an attractive valuation. Helvoet has a talented team with strong leadership, and we’re excited to partner together and unlock synergies of the combined business. We believe this will create meaningful long-term value for our shareholders.”
Mr. Phillips and other members of the Kimball management team will be hosting a conference call and webcast on Wednesday, July 1, 2026, at 9:00 AM ET, to provide additional information on the acquisition and answer questions related to the transaction.
Based in the Netherlands, Helvoet was founded in 1939 and most recently operated as a wholly-owned subsidiary of Hydratec Industries N.V., with manufacturing facilities in Tilburg, Netherlands, and Pune, India. In calendar 2025, revenue totaled approximately $56 million with an EBITDA margin rate in the mid-teens. Over 70% of revenue was from medical customers and the balance derived from other end markets that deliver strong margins and support continued reinvestment in the medical business.
Eveline Hogenkamp, Chief Executive Officer of Helvoet, added: “Helvoet has spent decades building something genuinely differentiated — design and engineering savvy, robust materials expertise, highly automated precision manufacturing, and long-term relationships with some of the world’s leading medical companies. Finding the right partner to take this business to the next level was critical, and in Kimball we found just that. Their Indianapolis facility, customer relationships, and operational capabilities are precisely what we need to scale our U.S. presence and win larger, more complex programs. The strategic fit is as strong as any I’ve seen — complementary capabilities, shared values around engineering excellence and quality, and a clear vision for where this business can go. I couldn’t be more excited about what we’re going to build together.”
Helvoet will continue to be led by its current leadership team, including CEO Hogenkamp, who will remain a key driver of the business going forward.
MP Corporate Finance served as the lead financial advisor to Helvoet, and Roth Capital Partners served as the exclusive financial advisor to Kimball Electronics.
Additional information on the acquisition is available in the Kimball Electronics Form 8-K filed with the Securities and Exchange Commission (“SEC”).
Conference Call / Webcast | ||||||||
Date: | Wednesday, July 1, 2026 | |||||||
Time: | 9:00 AM Eastern Time | |||||||
Live Webcast: | investors.kimballelectronics.com/events-and-presentations/events | |||||||
Dial-in #: | 877-407-8293 (or 201-689-8349) | |||||||
For those unable to participate in the live webcast, the call will be archived at investors.kimballelectronics.com. | ||||||||
About Kimball Electronics, Inc.
Kimball Electronics is a global, multifaceted manufacturer offering Electronics Manufacturing Services (EMS) and Contract Manufacturing Organization (CMO) solutions to customers around the world. From our operations in the United States, China, Mexico, Poland, Romania, and Thailand, our teams are proud to provide manufacturing services for a variety of industries. Recognized for a reputation of excellence, we are committed to a high-performance culture that values quality, reliability, value, speed, and ethical behavior. Kimball Electronics, Inc. (Nasdaq: KE) is headquartered in Jasper, Indiana.
To learn more about Kimball Electronics, visit www.kimballelectronics.com.
About Helvoet Polymer Technologies B.V.
Helvoet is a Contract Development and Manufacturing Organization (CDMO) for high-performance components in polymers and elastomers used in critical applications across health tech, food tech, new energy and mobility. They co-develop, manufacture and assemble precision components that meet the demands of regulated and high-performance environments. With approximately 85 years of experience, Helvoet combines deep materials expertise, in-house tooling and scalable production capacity to help customers move from concept to validated production with confidence.
Forward Looking Statements
Certain statements contained within this release are considered forward-looking, including our guidance, under the Private Securities Litigation Reform Act of 1995. The statements may be identified by the use of words such as “expect,” “should,” “goal,” “predict,” “will,” “future,” “optimistic,” “confident,” and “believe.” Undue reliance should not be placed on these forward-looking statements. These statements are based on current expectations of future events and thus are inherently subject to uncertainty. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from our expectations and projections. These forward-looking statements are subject to risks and uncertainties including, without limitation, global economic conditions, geopolitical environment and conflicts such as war, global health emergencies, availability or cost of raw materials and components, tariffs and other trade barriers, foreign exchange rate fluctuations, and our ability to convert new business opportunities into customers and revenue. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the company are contained in its Annual Report on Form 10-K for the year ended June 30, 2025.
Lasting relationships. Global success.
FAQ
What did Kimball Electronics (KE) announce regarding the Helvoet acquisition?
Kimball Electronics announced it acquired Helvoet Polymer Technologies and its India affiliate for about €90 million, or $103 million. The deal closed July 1, 2026, adding a specialized medical CDMO with operations in Europe and India to expand Kimball’s global medical manufacturing platform.
How much did Kimball Electronics pay for Helvoet and how was it funded?
Kimball paid a cash purchase price of approximately €90 million, or about $103 million, subject to working capital adjustments. The acquisition was financed using a combination of the company’s existing cash and borrowing capacity on its current lines of credit.
What are Helvoet’s recent revenue and profitability figures mentioned by Kimball Electronics?
Helvoet generated approximately $56 million of revenue in calendar 2025, with an EBITDA margin described as in the mid-teens. Over 70% of its revenue came from medical customers, with the remainder from other high-margin end markets that support reinvestment in the medical business.
How is the Helvoet purchase price structured, including any escrow, in Kimball’s deal?
The approximately €90 million purchase price is subject to post-closing working capital adjustments. Around €1.8 million that would otherwise be payable at closing is held in an escrow account to secure the seller’s obligations under the Share Purchase Agreement with Kimball Electronics’ subsidiary.
How will the Helvoet acquisition affect Kimball Electronics’ earnings and medical segment?
Kimball expects the Helvoet acquisition to be accretive to its fiscal 2027 adjusted earnings. Management also anticipates that Helvoet will increase sales in Kimball’s medical vertical in the low double-digit range, enhancing the company’s presence in high-growth healthcare segments.
What strategic benefits does Helvoet bring to Kimball Electronics’ global footprint?
Helvoet adds advanced micro-molding and precision injection molding capabilities, plus facilities in the Netherlands and India. Combined with Kimball’s Indianapolis plant, this creates a global medical CMO platform aimed at serving blue-chip medical customers and capturing near-term U.S. demand.
When will Kimball Electronics discuss the Helvoet acquisition with investors?
Management scheduled a conference call and webcast for Wednesday, July 1, 2026, at 9:00 AM Eastern Time. During this event, Kimball Electronics’ leadership plans to provide additional details on the Helvoet acquisition and respond to questions from investors and other interested parties.
Filing Exhibits & Attachments
6 documentsPress Releases
Other Documents
- EX-2.1 KIMBALL ELECTRONICS, INC. EX-2.1 662.0 KB
- EX-101 XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 2.0 KB
- EX-101 XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT 14.1 KB
- EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT 24.7 KB
- EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT 14.7 KB