Monday May 10, 8:20 am Eastern Time
Company Press Release
SOURCE: Pacific Aerospace & Electronics, Inc.
Pacific Aerospace & Electronics Announces Proposed
Acquisition of Skagit Engineering and $6 Million
Contract Award
WENATCHEE, Wash., May 10 /PRNewswire/ -- Pacific Aerospace & Electronics, Inc. (Nasdaq: PCTH - news),
announced today that it plans to acquire Skagit Engineering and Manufacturing, Inc., of Sedro-Woolley, Washington for $1.3
million in cash. Skagit machines and fabricates complete structures and tooling for the aerospace, transportation, and industrial
markets. This acquisition and the proposed acquisition of Novatech Engineering, which was announced previously, are intended
to help Pacific Aerospace & Electronics to continue its strategy of seeking integrated solutions for the needs of its blue chip
customers.
Werner Hafelfinger, Vice President of Operations stated, ''This acquisition will enhance our ability to engineer and design,
fabricate tooling and build production components for our customers. Furthermore we expect the integration of these
operations to reduce fixed costs and help position Pacific Aerospace & Electronics at the front end of the design-build
process.'' The Skagit transaction is expected to close by May 31 of this year.
The company also announced today that Skagit has received a $6 million contract award for fabricated tooling for Boeing
space launch vehicles, which will be built with proprietary technology developed and owned by Pacific Aerospace &
Electronics. Don Wright, President and CEO stated, ''The planned acquisitions of Novatech and Skagit will add to the
company's already strong design and manufacturing capabilities. Novatech is an industry leader in aviation tooling design and
has a mutual relationship with Skagit based on engineering tool design and fabrication. Combined with the production capability
of Pacific Aerospace & Electronics manufacturing units in the U.S. and Europe, we are assembling a complete and integrated
solution to better serve our customers for flight and assembly tooling, design and manufacturing.''
Pacific Aerospace & Electronics is a diversified, international manufacturing company that develops, manufactures and markets
high-performance electronics and metal components and assemblies for aerospace, defense, electronics and transportation
industries. The Company's primary businesses are organized into three operational and marketing units. The Electronics Group
develops, manufactures and sells a broad range of precision components, filtering devices, electronics assemblies, and
explosively bonded materials designed to operate with a high degree of reliability in harsh environments such as the ocean,
space, and the human body. The Aerospace Group provides machined and cast aluminum and metal part and component
assemblies for commercial and military aircraft, heavy trucking and automotive uses, primarily in the United States. The
Aeromet Group provides magnesium and aluminum precision cast parts and formed titanium and aluminum sheet products to
the aerospace, defense and motorsport industries, primarily in Europe.
Forward-looking statements in this release concerning trends or anticipated operating results are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees
of future performance and are subject to risks and uncertainties related to the Company's operations. These risks and
uncertainties include, but are not limited to, competitive factors (including the possibility of increased competition or
technological development, competitors, and price pressures); legal factors (such as limited protection of the Company's
proprietary technology and changes in government regulation); and the Company's dependence on key personnel and
significant customers.
SOURCE: Pacific Aerospace & Electronics, Inc. |
