LONGUEUIL, QC, April 29 /CNW Telbec/ - Héroux-Devtek Inc. (TSX: HRX) a leading Canadian manufacturer of aerospace and industrial products, today announced it has successfully completed the acquisition of substantially all the net assets of Eagle Tool & Machine Co. ("Eagle Tool") and of its subsidiary E-2 Precision Products ("E-2"), two privately-owned manufacturers of precision machined components for the aerospace industry. Eagle Tool and E-2 are located in Springfield and Cleveland, Ohio, respectively, and have a workforce of approximately 180 employees.
For the year ended December 31, 2009, Eagle Tool generated sales of approximately US$38 million and its year-end funded backlog was roughly US$125 million. The value of net assets acquired is approximately US$34 million, subject to post closing adjustments. Financing for the transaction has been secured through the Company's available cash and existing credit facilities.
Founded in 1939, Eagle Tool principally manufactures Original Equipment Manufacturer (OEM) and aftermarket complex landing gear components mainly for the military aerospace industry and also for certain commercial aerospace programs. It is mainly involved in the production of components for the C-5, C-17, C-130, F-15, F-18 and T-38 programs, while also participating in the F-35 Joint Strike Fighter program.
"Héroux-Devtek is pleased to join forces with Eagle Tool and we are looking forward to work with Bill Brougher who will continue to manage this well-respected organization," said Gilles Labbé, President and Chief Executive Officer of Héroux-Devtek. "Our new U.S. manufacturing base will further strengthen relationships with our main U.S. landing gear customers. The transaction also broadens our product portfolio and reaffirms our status as the third largest landing gear manufacturer in the world. We expect the transaction to be accretive to earnings per share by up to 10% in the first year following the acquisition."
Héroux-Devtek (TSX: HRX), a Canadian company, serves two main market segments: Aerospace and Industrial Products, specializing in the design, development, manufacture and repair and overhaul of related systems and components. Héroux-Devtek supplies both the commercial and military sectors of the Aerospace segment with landing gear systems (including spare parts, repair and overhaul services) and airframe structural components. The Company also supplies the industrial segment with large components for power generation equipment and precision components for other industrial applications. Approximately 65% of the Company's sales are outside Canada, mainly in the United States. The Company's head office is located in Longueuil, Québec with facilities in the Greater Montreal area (Longueuil, Dorval, Laval and Rivière-des-Prairies); Kitchener and Toronto, Ontario; Arlington, Texas; as well as Springfield, Cleveland and Cincinnati, Ohio.
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
SOURCE Héroux-Devtek Inc.
For further information: For further information: Héroux-Devtek Inc.: Gilles Labbé, President and Chief Executive Officer, (450) 679-3330; MaisonBrison: Martin Goulet, CFA, (514) 731-0000