Herley Industries up for sale-sources
Tue Mar 10, 2009 3:33pm EDT
By Jui Chakravorty Das
NEW YORK, March 10 (Reuters) - Herley Industries Inc (HRLY.O), a U.S. defense electronics manufacturer, has put itself up for sale in an auction expected to draw interest from large defense contractors, two sources familiar with the matter said on Tuesday.
The sale, which is being handled by investment bank Jefferies, is expected to draw a first round of bids in the next month, the sources said.
Herley declined comment and a spokesman for Jefferies did not return a call seeking comment.
The Lancaster, Pennsylvania-based company makes microwave technologies for the defense, aerospace and medical industries. It also supplies its products to defense contractors such as Lockheed Martin Corp. (LMT.N), Northrop Grumman Corp. (NOC.N), Boeing Co. (BA.N) and Raytheon Co. (RTN.N).
Herley had a market cap of $112 million based on the stock's closing price of $8.26 on Monday, according to Thomson Reuters data.
Herley shares rose nearly 35 percent on news of the sale before scaling back to $9.50 in afternoon trade on the Nasdaq, up about 15 percent.
The company was recently awarded a $10.5 million contract to provide integrated microwave assembly systems for radars used in naval electronic aircraft. |
