Provider of advanced technologies for the global aerospace and defense industries, Astronics Corporation, plans on purchasing French seat motion and lighting systems company PGA Electronic in a deal worth $28.5 million, by the end of 2013.
The deal's purchase price is slated to be paid 60 percent in cash and 40 percent in stocks from Astronics. Astronics CEO Peter J. Gundermann spoke on the importance on the deal and its effect on the company's growth.
"The addition of PGA to Astronics deepens our reach into the European aircraft market while extending our lighting and power technologies," said Gundermann. "The acquisition complements well our other lighting, cabin electronics and communication capabilities."
Located in Châteauroux, France, PGA Electronics is Europe's top manufacturer of in-flight entertainment and cabin management systems for VVIP aircraft. Founded in 1989 and currently housing 190 employees, the company ended its 2013 fiscal year (August 31) at sales of approximately $44 million. Though approximately 91 percent of PGA's sales are in Europe, its products can be found on many large private and government jets around the world.
New York-based Astronics leads in advanced, high performance lighting, electrical power and automated test systems for the global aerospace and defense industries. Its third-quarter report, released Tuesday, saw an increase by 30.2 percent to $89.7 million, compared with the same period last year, and a gross profit of $23.8 million.
This marks the third acquisition this year. Astronics purchased Portland, Oregon-based PECO Inc, designer and manufacturer of highly engineered commercial aerospace interior components and systems for the aerospace industry in May. PECO specializes in Passenger Service Units which incorporates air handling, emergency oxygen, electrical power management and cabin lighting systems among others.
Astronic's second purchase came in early October through acquiring aircraft antenna system supplier AeroSat Corporation for $12 million in cash and potential earn out. The earn out is expected to be between $5 and $20 million.
"We feel these acquisitions complement our existing product offerings and position Astronics well in growing technical niches in the aerospace market," Gundermann added. "These new capabilities will help Astronics improve the flying experience for passengers and improve reliability for operators."
