Astronics Announces Acquisition of AeroSat
Designs and Manufactures Aircraft Antenna Systems for Broadband Connectivity
and Satellite TV
EAST AURORA, N.Y., Oct. 1, 2013 (GLOBE NEWSWIRE) -- Astronics Corporation
(Nasdaq:ATRO), a leading provider of advanced technologies for the global
aerospace and defense industries, announced today that it has acquired certain
assets and liabilities from AeroSat Corporation, a supplier of aircraft
antenna systems, for $12 million in cash, plus the potential for an earn out.
Astronics expects the earnout will be between $5 and $20 million.
AeroSat designs and manufactures fuselage and tail-mounted antenna systems for
commercial transport, business jet, and military aircraft customers around the
world. Its antenna systems are typically used to enable satellite and
ground-based communication to aircraft, commonly for broadband and TV
applications. AeroSat is currently involved in a range of FAA certification
efforts with Gogo Inc. for Ku Band send/receive satellite antennas intended
for Gogo's international airline customers.
Peter J. Gundermann, CEO of Astronics, commented, "We are pleased to have
AeroSat as part of Astronics. We have long been involved in helping aircraft
passengers remain productive by powering their electronics devices. Now, with
AeroSat, we also provide antenna systems that enable broadband connectivity.
We believe AeroSat's capabilities fit in well with our vision for the future."
AeroSat, which is based in Nashua, NH and currently has approximately 40
employees, is expected to have sales of approximately $12 million to $14
million in calendar year 2013. AeroSat's President, Dennis Ferguson, will
continue to run the AeroSat operations.
Earnout payments will be due if AeroSat's 2014 revenue exceeds $30 million and
if 2015 revenue exceeds $40 million. Earnout payments increase with revenue
and are capped at $53 million. Astronics expects 2014 revenue from AeroSat
will total $20 to $40 million; this would suggest a range from no earnout up
to $3 million in earnout awarded.
Raymond James acted as exclusive financial advisor to AeroSat Corporation on
ABOUT ASTRONICS CORPORATION
Astronics Corporation is a leader in advanced, high-performance lighting,
electrical power, avionics databus products and automated test systems for the
global aerospace and defense industries. Astronics' strategy is to develop and
maintain positions of technical leadership in its chosen aerospace and defense
markets, to leverage those positions to grow the amount of content and volume
of product it sells to those markets and to selectively acquire businesses
with similar technical capabilities that could benefit from our leadership
position and strategic direction. Astronics Corporation and its wholly-owned
subsidiaries, Astronics Advanced Electronic Systems Corp., Ballard Technology,
Inc., DME Corporation, Luminescent Systems Inc., Max-Viz, Inc. and Peco, Inc.,
have a reputation for high-quality designs, exceptional responsiveness, strong
brand recognition and best-in-class manufacturing practices. The Company
routinely posts news and other important information on its website at
For more information on Astronics and its products, visit its website at
Safe Harbor Statement
This news release contains forward-looking statements as defined by the
Securities Exchange Act of 1934. One can identify these forward-looking
statements by the use of the words "expect," "anticipate," "plan," "may,"
"will," "estimate" or other similar expressions. Because such statements apply
to future events, they are subject to risks and uncertainties that could cause
actual results to differ materially from those contemplated by the statements.
Important factors that could cause actual results to differ materially include
the state of the aerospace and defense industries, the market acceptance of
newly developed or acquired products, the receipt of FAA certifications,
internal production capabilities, the timing of orders received, the status of
customer certification processes, the demand for and market acceptance of new
or existing aircraft which contain the Company's products, customer
preferences, and other factors which are described in filings by Astronics
with the Securities and Exchange Commission. The Company assumes no obligation
to update forward-looking information in this news release whether to reflect
changed assumptions, the occurrence of unanticipated events or changes in
future operating results, financial conditions or prospects, or otherwise.
David C. Burney, Chief Financial Officer
Phone: (716) 805-1599, ext. 159
Deborah K. Pawlowski, Kei Advisors LLC
Phone: (716) 843-3908
Astronics Corporation logo
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