Company Enters Agreement to Sell Non-Core Engineering Services
Business
LOS ANGELES--(BUSINESS WIRE)--Feb. 25, 2016--
Ducommun Incorporated (NYSE: DCO) (“Ducommun” or the “Company”) today
announced that it has entered into a definitive agreement with General
Atomics to sell the Company’s Miltec Corporation subsidiary for $14.6
million in cash, subject to post-closing adjustments. Miltec provides
engineering, technical and program management services principally to
the U.S. Department of Defense and U.S. intelligence agencies for
advanced weapons systems and military defense systems. The business had
sales of approximately $28.2 million in 2015. The completion of the
transaction is subject to customary closing conditions. KippsDeSanto &
Co. acted as financial advisor to Ducommun.
“With the sale of Miltec, we are taking another proactive step in
focusing our energy, attention and resources on the strategic areas that
are core to Ducommun’s growth and financial performance going forward,”
said Anthony J. Reardon, chairman and chief executive officer. “We
believe that our current portfolio is now better positioned to support
our vision to provide unique, value-added solutions and technologies to
the aerospace, defense and related end markets.”
About Ducommun Incorporated
Founded in 1849, Ducommun Incorporated provides engineering and
manufacturing services to the aerospace, defense, and other industries
through a wide spectrum of electronic and structural applications. The
company is an established supplier of critical components and assemblies
for commercial aircraft and military and space vehicles as well as for
the energy market, medical field, and industrial automation. It operates
through two primary business units – Ducommun AeroStructures (DAS) and
Ducommun LaBarge Technologies (DLT). Additional information can be found
at www.ducommun.com.
Statements contained in this press release regarding other than
recitation of historical facts are forward-looking statements. These
statements are identified by words such as “may,” “will,” “ begin,” “
look forward,” “expect,” “believe,” “intend,” “anticipate,” “should”,
“potential,” “estimate,” “continue,” “momentum” and other words
referring to events to occur in the future. These statements reflect the
Company’s current view of future events and are based on its assessment
of, and are subject to, a variety of risks and uncertainties beyond its
control, including, but not limited to, the state of the world
financial, credit, commodities and stock markets, and uncertainties
regarding the Company, its businesses and the industries in which it
operates, which are described in the Company’s filings with the
Securities and Exchange Commission. The Company is under no obligation
to (and expressly disclaims any such obligation to) update or alter its
forward-looking statements whether as a result of new information,
future events or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160225005466/en/
Source: Ducommun Incorporated
Ducommun Incorporated
Douglas L. Groves, 310.513.7200
Vice
President, Chief Financial Officer and Treasurer
or
Chris
Witty, 646.438.9385
Investor Relations
cwitty@darrowir.com