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/ BARBARA MURPHY

Illinois Company Agrees to Merge With Eltron in Stock Swap

July 21, 1998|BARBARA MURPHY

Zebra Technologies of Vernon Hill, Ill., has signed an agreement to acquire 100% of the outstanding shares of Eltron International in Simi Valley.

The transaction is subject to shareholder and regulatory approvals.

The contemplated transaction will be structured as a tax-free merger in which each of Eltron's common shares will be exchanged for .90 shares of Zebra common stock. The combined company would have generated sales in excess of $313 million in the 12 months ended March 31 and would have a market value of more than $1.2 billion at current prices.

Edward Kaplan, Zebra's chairman and chief executive, will remain as chairman and CEO of the combined entity. Donald K. Skinner, Eltron's chairman and CEO, will become vice chairman of the board and head the company's card printer business. The company's headquarters will be in Vernon Hills.

An Eltron spokeswoman said there are no plans to make changes at that facility. Eltron employs approximately 500 workers in Simi Valley, the spokeswoman said.

Zebra and Eltron management said the merger will allow the creation of the broadest line of bar code printers in the world, expanded distribution of both companies' product offerings and opportunities to reduce costs. In addition, the combination of the two companies' development teams is expected to result in more rapid development of printer products.

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