Firan Technology Group Corporation (“FTG”) Announces the Signing of a Definitive Agreement to Acquire a US Based Circuit ...
April 01 2019 - 6:04AM
Firan Technology Group Corporation (TSX:FTG), a leading provider of
electronic products and avionic sub-systems for the aerospace and
defense markets, announced it has entered into an agreement to
acquire a US based circuit board manufacturing company focused on
the aerospace and defense markets. The closing of the
acquisition is subject to approval by the Committee on Foreign
Investment in the United States (CFIUS) and other customary closing
conditions. The application for this approval can only be
submitted after signing a definitive purchase agreement. The
closing of the transaction is expected to take place in the second
half of 2019.
The purchase agreement is for all the
outstanding shares of the target company. The purchase price
is approximately $4M CAD, subject to typical closing
adjustments. The target company has had reported annual sales
of $7-9M CAD in its unaudited financial statements over the past
few years. The acquisition price will be paid in cash on
closing using funds from FTG’s existing credit facilities.
“FTG had identified a desire to add US
manufacturing capacity for standard technology product for
aerospace and defense applications. This acquisition, if
completed, will complement FTG’s existing facilities, add capacity
and new customers,” stated Brad Bourne President and CEO, FTG
Corporation. He added, “The increased capacity and product focus
will enable FTG to continue to balance its work across existing
facilities in Canada, the US and China, to allow all FTG facilities
to better focus on technologies best suited for their site.”
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
FTG is an aerospace and defense electronics product and
subsystem supplier to customers around the globe. 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,
Chatsworth, California and a joint venture in Tianjin, China.
FTG Aerospace manufactures illuminated cockpit
panels, keyboards and sub-assemblies for original equipment
manufacturers of aerospace and defense equipment. FTG
Aerospace has operations in Toronto, Ontario, Chatsworth,
California, Fort Worth, Texas and Tianjin, China.
The Corporation's shares are traded on the Toronto Stock
Exchange under the symbol FTG.
FORWARD-LOOKING STATEMENTS
This news release contains certain
forward-looking statements. These forward-looking statements
are related to, but not limited to, FTG’s operations, anticipated
financial performance, business prospects and strategies, the
expected closing of the acquisition, the source of funds for the
acquisition price and the benefits of the acquisition for FTG.
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 Corporation and
inherently involve numerous risks and uncertainties, known and
unknown, including economic factors and the Corporation’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 Corporation. The
reader is cautioned to consider these and other factors carefully
when making decisions with respect to the Corporation 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
please contact:
Bradley C. Bourne, President and CEOTel: (416)
299-4000, ext. 314Firan Technology Group
Corporationbradbourne@ftgcorp.com
Melinda Diebel, Vice President and CFOTel: (416) 299-4000, ext.
264Firan Technology Group Corporationmelindadiebel@ftgcorp.com
Additional information can be found at the
Corporation’s website www.ftgcorp.com
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