Astronics Corporation Announces Acquisition of Telefonix Inc.
October 27 2017 - 6:30AM
Business Wire
Astronics Corporation (NASDAQ:ATRO), a leading provider of
advanced technologies for the global aerospace and defense
industries, today announced that it has entered into a definitive
agreement to acquire substantially all of the assets of Telefonix
Inc. and a related company, Product Development Technologies, LLC,
(together as “Telefonix”) for approximately $104 million in cash,
funded with Astronics’ senior revolving credit facility. The
acquisition is expected to close by year end, and is subject to
typical closing conditions, including a review under the
Hart-Scott-Rodino Antitrust Improvements Act.
Telefonix PDT, located in Waukegan and Lake Zurich, Illinois,
designs and manufactures advanced in-flight entertainment and
connectivity equipment, as well as providing industry leading
design consultancy services for the global aerospace industry. The
company’s products include wireless access points, file servers,
content loaders, passenger control units and cord reels, as well as
engineering services for its customers.
“We believe Telefonix is an excellent strategic fit with
Astronics. Telefonix is a leader in the critical equipment it
designs and manufactures and has successfully established itself
with an impressive set of aerospace customers. We believe that
Astronics will be able to both strengthen and benefit from the
technology and relationships that Telefonix brings to our company,”
stated Peter J. Gundermann, President and CEO of Astronics. “We
welcome the Telefonix team to Astronics. We are confident the
combination of world-class capabilities from both organizations
will serve to further our mutual goals.”
Telefonix has forecasted 2017 annual sales of approximately $60
million to $70 million. Its historical adjusted EBITDA (earnings
before interest, taxes, depreciation and amortization) margins have
been consistent with Astronics’ aerospace segment’s past
performance. The acquisition is expected to be accretive to
earnings in 2018. Its impact on 2017 earnings will depend on the
closing date and one-time acquisition related charges, but is
expected to be nominal.
ABOUT ASTRONICS CORPORATION
Astronics Corporation (NASDAQ:ATRO) is a leading supplier of
advanced technologies and products to the global aerospace,
defense, and semiconductor industries. Astronics’ products and
services include advanced, high-performance electrical power
generation and distribution systems, seat motion solutions,
lighting and safety systems, avionics products, aircraft
structures, systems certification, and automated test systems.
Astronics’ strategy is to increase its value by developing
technologies and capabilities, either internally or through
acquisition, and using those capabilities to provide innovative
solutions to its targeted markets and other markets where its
technology can be beneficial. Through its wholly owned
subsidiaries, Astronics has a reputation for high-quality designs,
exceptional responsiveness, strong brand recognition, and
best-in-class manufacturing practices.
For more information on Astronics and its products, visit
Astronics.com.
Safe Harbor Statement
This news release contains forward-looking statements as defined
by the Securities Exchange Act of 1934. One can identify these
forward-looking statements by the use of the words “expect,”
“anticipate,” “plan,” “may,” “will,” “estimate” or other similar
expressions. Because such statements apply to future events, they
are subject to risks and uncertainties that could cause actual
results to differ materially from those contemplated by the
statements. Important factors that could cause actual results to
differ materially include the progress of customer fleet upgrade
programs, the state of the aerospace and defense industries, the
market acceptance of newly developed products, internal production
capabilities, the timing of orders received, the status of customer
certification processes, the demand for and market acceptance of
new or existing aircraft which contain the Company’s products,
customer preferences, and other factors which are described in
filings by Astronics with the Securities and Exchange Commission.
The Company assumes no obligation to update forward-looking
information in this news release whether to reflect changed
assumptions, the occurrence of unanticipated events or changes in
future operating results, financial conditions or prospects, or
otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20171027005143/en/
CompanyAstronics CorporationDavid Burney, CFO,
716-805-1599 x 159david.burney@astronics.comorInvestorsKEI
Advisors LLCDeborah K. Pawlowski,
716-843-3908dpawlowski@keiadvisors.com
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