Fields Aircraft Spares Completes Acquisition of Flightways Manufacturing Inc. for $2.9 Million
SIMI VALLEY, Calif.--(BUSINESS WIRE)--Jan. 26, 1998--Fields Aircraft Spares Inc. (Nasdaq:FASI - news) Monday announced that it has completed the acquisition of Flightways Manufacturing Inc., a Van Nuys, Calif.-based manufacturer of high-quality plastic replacement components for commercial aircraft seats and interiors.
The company purchased the outstanding shares of Flightways for $2.9 million in cash, and, in addition, the company retired $1.1 million of Flightways debt by refinancing it through the company's existing bankers. The existing management of Flightways will be staying on to operate the Flightways subsidiary.
Alan Fields, president of the company, said: ''I'm very excited that we have finalized our previously announced acquisition of Flightways. It not only follows our strategy of growth through acquisitions but provides us with a key entree into the manufacturing side of the aircraft-parts business.
''We are expecting Flightways to add approximately $1.5 million of sales during the first quarter of 1998, and we also expect the acquisition to be accretive to earnings.''
Commenting on the company's acquisition strategy, Fields stated: ''We see the acquisition of Flightways as the first in a series of acquisitions that are going to drive our growth and position us as one of the premier manufacturers and distributors of aircraft-cabin- interior replacement parts in the country.
''We are aggressively searching for other aircraft-parts manufacturers to acquire, and we have already proceeded well down the negotiation paths with several companies.''
Founded in 1991, Flightways manufactures and repairs high-quality plastic replacement components for commercial aircraft seats and interiors. Flightways serves a growing list of customers, including the majority of U.S. domestic airlines as well as an increasing number of international carriers. Seating components include food trays, latches, shrouds, panel armcaps, bumper strips and escutcheons. Other aircraft components are for aircraft lavatories, galleys, cockpits, windows and overhead units and a variety of other subassemblies. Finally, through its repair station (FAA Repair Station No. UFWR486L), Flightways overhauls and repairs seats, seating components, carts and modules.
Fields Aircraft Spares Inc., through its wholly owned subsidiaries Fields Aircraft Spares Incorporated and Fields Aero Management Inc., is a leading distributor of aircraft-cabin-interior replacement products and is a broker for a wide variety of factory new parts applicable to various commercial aircraft models and manufacturers.
Additional information about Fields, including access to copies of its periodic filings with the Securities and Exchange Commission, is available on the company's Web site: fieldsair.com .
Statements in this news release that relate to future plans, financial results or projections, events or performance, including statements with respect to future business potential, future sales and future earnings, and the effects of the acquisition, are forward- looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to differ materially. Actual results may differ from such forward-looking statements as a result of a number of factors, including but not limited to the successful integration of Flightways into the company's current operations, the ability to successfully combine the businesses, competitive factors and pricing pressures, ability to obtain necessary capital or financing, the price and availability of aircraft parts and other materials, successful execution of the company's expansion plans, failure to maintain existing customer or vendor relationships, shifts in market demand, general economic conditions and other risks and uncertainties discussed in periodic reports filed by the company with the Securities and Exchange Commission and that the company urges investors to consider. Copies of filed reports may be requested from the company or obtained from the company's Web site.
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Contact:
Fields Aircraft Spares Inc., Simi Valley
Alan Fields, 805/583-0080
or
Coffin Communications Group, Sherman Oaks, Calif.
Michael S. Manahan, 818/789-0100 |
