TORONTO, Dec. 31 /CNW/ - Firan Technology Group Corporation (TSX: FTG)
announced today that it has acquired substantially all of the assets from
Filtran Microcircuits Inc. ("Filtran"), a Canadian printed circuit board
manufacturer based in Ottawa, Ontario and focused primarily on the manufacture
of microwave printed circuit boards for high frequency applications. Filtran
had annual revenues of approximately $4,000,000 in 2007.
The transaction was effected pursuant to an asset purchase agreement
entered into between FTG, Filtran and Filtran's parent company, Merrimac
Industries Inc. ("Merrimac") (AMEX: MRM). The total consideration payable by
FTG is $1.45 million plus the assumption of liabilities valued at
approximately $360,000. FTG paid $800,000 of the purchase price at closing
with the balance payable near the conclusion of an eight-week transitional
period. FTG is financing the acquisition from existing cash and its bank
The purchase of Filtran's assets has significant strategic benefit to FTG
as it is expected that the acquisition will accelerate its penetration of very
high frequency circuit board applications. This market segment's use of high
technology materials and special processing requirements limit competition and
is a growing segment including many aerospace and defense applications. Under
the terms of the acquisition, FTG has acquired advanced and unique processing
equipment, process know-how, all of Filtran's customer contracts as well as
the working capital of Filtran. Also as part of the acquisition, FTG has
entered into a separate agreement with Merrimac, to provide printed circuit
boards for Merrimac's internal needs including a specific military program.
"We are excited about this deal as it enables FTG to continue its
strategy of consolidating printed circuit board manufacturers into a larger,
more capable company that can compete on a world scale", commented Brad
Bourne, President and Chief Executive Officer of FTG. He added, "Canadian
manufacturers, including FTG, have been hard hit by the continued
year-over-year appreciation of the Canadian dollar and strong commodity
prices. Building larger scale, particularly in specialized technologies, is a
critical strategy in attempting to overcome these external factors."
"For FTG, after a short transitional period, this transaction is expected
to boost activity in both our Toronto and Chatsworth facilities and should
generate positive contribution margin for both sites", added Mr. Joe Ricci,
Chief Financial Officer.
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
FTG is an aerospace and defense electronics product and subsystem
supplier to the North American marketplace. FTG has two operating units.
FTG Circuits is a manufacturer of high technology/high reliability
printed circuit boards. Our customers are leaders in the aviation, defense,
and high technology industries. FTG Circuits has operations in Toronto,
Ontario and Chatsworth, California.
FTG Aerospace manufactures illuminated cockpit panels, keyboards and
sub-assemblies for original equipment manufacturers of avionics products as
well as airframe manufacturers.
The Company's shares are traded on the Toronto Stock Exchange under the
This news release contains certain forward-looking statements. These
forward-looking statements are related to, but not limited to, FTG's's
operations, anticipated financial performance, business prospects and
strategies. Forward-looking information typically contains words such as
"anticipate", "believe", "expect", "plan" or similar words suggesting future
outcomes. Such statements are based on the current expectations of management
of the Company and inherently involve numerous risks and uncertainties, known
and unknown, including economic factors and the Company's industry, generally.
The preceding list is not exhaustive of all possible factors. Such
forward-looking statements are not guarantees of future performance and actual
events and results could differ materially from those expressed or implied by
forward-looking statements made by the Company. The reader is cautioned to
consider these and other factors carefully when making decisions with respect
to the Company and not place undue reliance on forward-looking statements.
Other than as may be required by law, FTG disclaims any intention or
obligation to update or revise any such forward-looking statements, whether as
a result of new information, future events or otherwise.
For further information:
For further information: Bradley C. Bourne, President and CEO, Firan
Technology Group Corporation, Tel: (416) 299-4000 x314,
firstname.lastname@example.org; Joseph R. Ricci, Vice President and CFO, Firan
Technology Group Corporation, Tel: (416) 299-4000 x309, email@example.com