FEBRUARY 17TH, 2017
Moog Inc. Announces Acquisition
EAST AURORA, N.Y., Feb. 17, 2017 (GLOBE NEWSWIRE) — Moog Inc. (NYSE:MOG.A) and (NYSE:MOG.B) announced today that it has entered into a definitive agreement to acquire the global Rotary Transfer Systems business (“Rotary”) from Morgan Advanced Materials. The purchase price is €40 million ($42 million U.S.) in cash and includes Rotary’s European manufacturing sites in Antweiler, Germany and Chalon-St-Memmie, France. The transaction is subject to receipt of applicable regulatory approvals in Germany and customary closing conditions and is expected to happen within 60 to 90 days.
Rotary designs and manufactures a portfolio of electromechanical systems for the transfer of current, signals and data in rotating devices or structures. The technology can be combined to include electrical, pneumatic, hydraulic and multi-channel fibre optic transfers and is typically used in tower cranes, radar systems, wind turbines, automotive and construction equipment.
“This acquisition gives the Components Group the opportunity to offer a complete line of industrial slip rings and rotary transfer solutions that meet the needs of our expanding customer base in Europe, Asia and North America,” said Larry Ball, Moog Inc. Vice President and President of Moog’s Components segment. “In addition, it provides us a strategic base and a solid business in mainland Europe to further grow our slip ring business.”
Rotary had 2016 revenues of approximately $21 million.
The acquisition is expected to add approximately $13 million to Moog’s sales for the remaining seven months of Moog’s 2017 fiscal year. This acquisition is expected to be neutral to Moog’s earnings per share for the year ended September 30, 2017.
The Company has sufficient cash on hand and availability under its revolving credit facility to finance the acquisition.