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The company announces that it has completed its acquisition of the assets and certain liabilities of the composite Aerostructures division of SGL Carbon SE’s subsidiary, Hitco Carbon Composites.
The acquisition, which was first announced in July 2015, will approximately double Avcorp’s revenue while strengthening its balance sheet. This acquisition will also expand Avcorp’s carbon composite manufacturing capabilities and result in the Company receiving cash, payment commitments and supplies valued at approximately $65 million. All amounts are in Canadian currency.“The acquisition of the assets and certain liabilities of Hitco’s Aerostructures division represents one of our most significant milestones to date and is strategic on a number of levels,” said Pete George, Avcorp Group’s CEO. “Without incurring any debt or diluting shareholders through the issuance of new shares, we have significantly strengthened our ability to address the growing market for composite airframe structures in the aviation sector. More importantly, we have strengthened our position within the supply chains of our most important customers. We have witnessed first-hand how the aerospace industry leaders are taking advantage of the benefits that carbon composites provide, including reducing aviation fuel costs, reducing the number of component parts and increasing design flexibility.”Mr. George also said, “Adding Hitco’s Aerostructures division’s manufacturing facilities to our operations will be immediately accretive to our financial performance, essentially almost doubling our revenue to a range of approximately $165 million to $175 million on a pro forma annualized basis. With expected operational efficiencies and improved utilization of our existing facilities in Delta and Burlington, the transaction will accelerate our expected return to profitability.”More information: www.avcorp.com