LOS ANGELES, April 5 (UPI) -- Aerospace component maker Ducommun Inc. is expanding with the acquisition of Missouri's LaBarge Inc., an electronics manufacturer.
The acquisition will nearly double Ducommun's revenue base, improve the company's position as a Tier 2 leader in aerostructures and electronics and bring access to new customers and markets, it said.
Pursuant to the terms of the definitive agreement between the companies, Ducommun will acquire all issued and outstanding shares of LaBarge at $19.25 per share in cash for a total purchase price of approximately $340 million and assume LaBarge's outstanding debt, which totaled $30 million as of Jan. 2.
The closing of the transaction is subject to the approval of LaBarge shareholders and other customary conditions, including expiration of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Once completed, LaBarge will be combined with the Ducommun Technologies subsidiary and renamed Ducommun LaBarge Technologies.
"This is one of the most strategically significant moves Ducommun has ever made, one which will transform our company into a larger, stronger entity focused on serving our customers in aerostructures and electronics," said Anthony J. Reardon, president and chief executive officer of Ducommun.
"LaBarge is a leading supplier of critical electronics systems and subsystems for the aerospace and defense, industrial, energy and medical markets, with a compatible corporate culture, excellent management team and outstanding workforce.
"By adding LaBarge to Ducommun Technologies, we will form one of the largest global aerospace and defense providers of EMS for high-margin, low-volume/high-mix applications."
In connection with the acquisition, Ducommun has fully committed debt financing provided by certain affiliates of UBS Investment Bank and Credit Suisse.
