LONGUEUIL, Quebec, Feb. 27, 2018 (GLOBE NEWSWIRE) -- Héroux-Devtek Inc. (TSX:HRX) (“Héroux-Devtek” or the “Corporation”), a leading international manufacturer of aerospace products, is pleased to announce an agreement to acquire the shares of Beaver Aerospace & Defense Inc. and its wholly-owned subsidiary PowerTHRU Inc. (“Beaver”), from Phillips Service Industries Inc., for a purchase price of approximately US$23.5 million, including a US$2.5 million balance of sale payable over two years following closing. The transaction is expected to close in the next 90 days, subject to customary closing adjustments and certain regulatory approvals. The transaction will be financed through the Corporation’s existing revolving credit facility. Given the strong cash generation of Héroux-Devtek year-to-date, the financial leverage ratios (as of March 31st 2018) presented with the CESA acquisition on October 2nd2017, would not increase as a result of the closing of the transaction. Beaver generates annual revenues of approximately US$30 million, of which about two thirds are derived from the defense sector.
“This acquisition will allow us to broaden our existing aerospace product offering into ball screws and actuation systems and will enlarge our footprint in North America, while being complementary with Héroux-Devtek and CESA’s businesses. In addition, we plan to leverage Beaver’s relationships with industry leading OEMs and suppliers in the ball screws and actuation business in order to facilitate our penetration of this market particularly in the U.S. We will also benefit from cross-selling opportunities and operational efficiencies. Beaver has committed management and employees and we are looking forward to having them join us”, commented Héroux-Devtek President & CEO, Gilles Labbé.
Founded in 1952, Beaver is a vertically integrated manufacturer with a growing portfolio of company-designed products. It designs and manufactures custom ball screws from a variety of materials based on customer and application requirements as well as designs, manufactures, assembles and tests electromechanical actuators. Beaver operates three facilities totalling 82,200 square feet in Livonia, Michigan and employs approximately 100 people.
On October 2nd 2017, Héroux-Devtek announced an agreement to acquire Compañia Española de Sistemas Aeronauticos, S.A. (“CESA”), a subsidiary of Airbus SE (PA: AIR), headquartered in Madrid, Spain. The closing is expected to occur around the Corporation’s 2018 fiscal year end, subject to certain approvals, including the authorization of the Spanish Council of Ministers and the prior acquisition by Airbus of the stake of its minority partner in CESA.
