Key Tronic Acquires Honeywell’s Keyboard Division

SPOKANE, Wash. (AP) _ Computer keyboard manufacturer Key Tronic Corp. has agreed to buy Honeywell Inc.’s keyboard division for about $33 million.

The addition of Honeywell’s division will nearly double Key Tronic’s production capacity, the companies said Thursday.

Minneapolis-based Honeywell’s keyboard division has facilities in El Paso, Texas; Las Cruces, N.M.; and Juarez, Mexico.

The transaction is subject to review by federal regulatory agencies.

The deal involves cash, a note payable to Honeywell and shares of Key Tronic stock that would give Honeywell a 7 percent shareholder position in the Spokane-based company.

Michael R. Bonsignore, Honeywell chairman and chief executive officer, said Honeywell’s keyboard division has been profitable but no longer fits with company plans to focus on systems controls.

Honeywell provides electronic controls for energy efficiency, environmental protection, productivity and safety in homes, offices, industry, aviation and space technology. It employs 55,000 in 95 countries.

Key Tronic, with manufacturing facilities in the Spokane area and Ireland and Malaysia, produces keyboards and other computer input devices. The company employs about 1,300.

Key Tronic chief executive officer Stanley Hiller, Jr., said the acquisition will help his company take a bigger share of the international market.

″The new markets and production flexibility help us present an effective American challenge to international competitors,″ Hiller said.