Join        Login             Stock Quote

LMI Aerospace (LMIA) Announces Agreement To Acquire Valent Aerostructures

 December 06, 2012 08:06 AM

(By Balachander) LMI Aerospace Inc. (NASDAQ: LMIA) announced an agreement to acquire Valent Aerostructures LLC for roughly $247 million.

The deal also includes a potential earnout of up to $40 million in the event Valent surpasses certain EBITDA thresholds in 2013, LMI said.

LMI, which supplies structural assemblies and components to the aerospace and defense markets, expects the deal to slighthly dilute its 2013 earnings, but "highly" add to bottom-line in 2014.

Kansas City, Missouri-based Valent provides complex, structural components and major sub-assemblies for OEM and Tier 1 airframe manufacturers in the aerospace and defense industries.

[Related -LMI Aerospace (LMIA) Upgraded To 'Buy' By Deutsche Bank On Recent Sell-Off]

LMI said it expects to generate over $480 million of revenue based on projected 2013 results of the combined entities.

"Valent provides additional capabilities, which should position LMI for long-term growth and success in what we believe will be a robust aerospace cycle," said LMI CEO Ronald Saks. "Another important benefit of this combination is increased content on key platforms."

According to LMI, Spirit AeroSystems is Valent's largest customer providing over 50 percent of Valent's sales in 2012. The Boeing 737 platform represents most of these sales.

LMI has entered into a commitment letter with RBC Capital Markets to provide $300 million of new senior secured credit facilities to finance the Valent deal.

The deal is expected to close by the end of 2012.

LMIA shares closed 2.94 percent lower at $18.82 on Wednesday.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.