Iec Electronics (NYSE AMEX:IEC)

NEWARK, NY--(Marketwire - May 15, 2012) - IEC Electronics Corp. (NYSE Amex: IEC) announced it has reached final agreement with the sellers of Southern California Braiding Inc. (SCB) regarding acquisition-related escrow claims.

When the SCB acquisition was closed in December, 2010, cash and shares of IEC common stock were deposited in escrow with Wells Fargo Bank, N.A. to be released in 2012 to the buyer or sellers dependent upon SCB's achievement of certain post-closing performance metrics during calendar 2011. IEC and the sellers have just concluded an agreement finalizing escrow claims, under which IEC will receive $1.8 million in cash and 68,625 shares of IEC common stock from the escrow. The funds will be applied to IEC debt and the equity will be retired.

W. Barry Gilbert, Chairman and CEO, said, "We were pleased to come to a satisfactory mutual agreement with the sellers of SCB. We will use the funds to continue paying down our debt. As mentioned in our shareholder call on Wednesday of last week, we anticipated paying down our debt by approximately $9 million in fiscal 2012. After the application of these funds, we now envision paying down our debt by approximately $11 million. This is on top of the $12 million we paid down the debt since we purchased SCB last year.

"Although Southern California Braiding has had a challenging start transitioning from a private company to a rapidly growing public company, we believe it will turn out to be one of IEC's best acquisitions. It has started to exhibit the growth we envisioned."

NEWARK, NY--(Marketwire - December 17, 2010) - announced the acquisition of Southern California Braiding Company, Inc. (SCB), a privately held company focused on providing high reliability wire and cable products to the military and defense market. SCB is located in Bell Gardens, California.

With annual revenue of approximately $20 million, SCB serves a number of leading customers in the military and defense market. At a purchase price of $25.0 million, the acquisition is expected to be immediately accretive to IEC shareholders. The purchase price has been financed by a credit facility of approximately $24.4 million, provided by Manufacturers and Traders Bank (M&T) and $600,000 in equity.