Heilind Electronics is the largest North American distributor of interconnect products and services, and it has just expanded its existing franchise agreement with Molex (NASDAQ: MOLX) to add the latter’s newly acquired Temp-Flex cable product line. Molex acquired Temp-Flex Cable back in 2011. Temp-Flex is known for designing and manufacturing specialty cable and wire technology to provide solutions to problems faced by a variety of industries like medical, military, computer, aerospace, electronics and even test and measurement.
For Heilind Electronics, this will mean adding a very profitable product line to the repertoire of products offered by the company. Founded in 1974, Heilind is a market leader when it comes to distribution of connectors, wires, cables, relays, thermal management products, switches, wiring accessories, circuit protection products and a whole host of other products of the same ilk. It has enjoyed a profitable partnership and franchise with Molex, and the addition of Temp-flex will only serve to sweeten the deal.
Molex also stands to gain much from the added clause in the franchise agreement. As per Fred Bell, the Vice President of Global Distribution for Molex, “We’ve had a long and mutually successful relationship with Heilind so this was an easy decision for us. Heilind has the people, the resources and the reach to help us greatly expand distribution of the Temp-Flex brand and make it a major force in the global marketplace.”
Founded in 1938, Molex has long since been recognized as a leading interconnect solutions provider for a variety of industries. Molex products make their way into a number of varied markets like industrial, automotive, lighting, military, consumer electronics, telecommunications and medical as well as data communications. This global company has representation across 16 countries in the world and has more than 40 manufacturing locations.
Molex is a mid-cap company trading on the NASDAQ markets and offers one of the highest dividend yields among others in the same segment of the market.
As of market closing on October 23, Molex shares were trading at $25.80 per share, which is a decrease of 3.2% or $0.85 per share. With market capitalization of nearly $4.6 billion, Molex is one of the larger mid-cap companies trading on the NASDAQ. At the end of the day on October 24, Molex was sitting at $25.67, posting a decrease of $0.13 or 0.5% for the day.
Other companies in the same diversified electronics industry include Amphenol (NYSE: APH), headquartered in Connecticut. Though Amphenol has a larger market capitalization, it is a part of the same industry as Molex. Amphenol’s shares were trading at $59.92 per share, which was down by 1.8% or $1.08 per share on October 24.
Acuity Brands (NYSE: AYI) is another mid-cap company in the same segment trading at $63.62 per share. Molex is currently offering a dividend yield of 3.3% while Amphenol and Acuity are offering 0.7% and 0.8%, respectively.
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