Pacific Aerospace & Electronics Plans to Acquire Electronic
Specialty Corporation and Displays & Technologies, Inc.
WENATCHEE, Wash., Jan. 27 /PRNewswire/ -- Pacific Aerospace & Electronics, Inc. (Nasdaq: PCTH; PCTHW) announced today that it has signed a letter of intent to acquire all of the outstanding stock of Electronic Specialty Corporation and its wholly owned subsidiary, Displays & Technologies, Inc. Among other specific terms, the transaction is valued at approximately $8 million in cash and stock. The combined sales rate of both companies is currently approximately $12 million annually. Both companies supply parts, either directly or indirectly, to all of the leading manufacturers in commercial, military and defense sectors of the aerospace industry. The acquisition is expected to further strengthen Pacific Aerospace's portfolio of niche manufacturing, technology-oriented companies, and to enable the Company to further expand and diversify its markets.
Electronic Specialty Corporation, located in Vancouver, Washington develops and markets high reliability, military specification, electro-mechanical devices for military and satellite applications. Displays & Technologies, Inc., also located in Vancouver, develops and markets ruggedized, optically enhanced flat panel displays that function in a wide range of harsh environments and serve a high-end niche market. The Company makes a variety of active matrix LCD panels and optics for military, defense and commercial applications, ranging from displays for military aircraft cockpit instrumentation, to ground vehicles, to retail banking ATM's. D&T's products provide clear, bright data and graphics from any angle, under a wide temperature range and under a variety of lighting conditions.
The information display business is one of the most dynamic areas of growth and development in the high technology sector. The rapidly emerging flat panel display industry has been growing at an estimated 30% annual compound rate since 1990. Displays & Technologies, Inc. currently sells primarily into the military and commercial avionics segment of the aerospace industry, which has a worldwide volume for display assemblies valued at $1.2 billion. The ruggedization flat panel display segment, which includes aerospace, weapons, naval and other environmentally-demanding sectors, is approximately $300 million.
"This strategic expansion is key to our long-term growth, as we continue to transform our overall business profile to being product oriented," said Don Wright, president and CEO of Pacific Aerospace & Electronics. "I am especially excited about the prospect of adding these profitable companies to our group. In addition to the significant growth potential, we highly value their seasoned management team, their loyal workforce and their customers," said Mr. Wright. "By combining Electronic Specialty Corporation's and Displays & Technologies' product-based businesses with Pacific Aerospace's expanding global business, we will be ideally positioned to build on the combined strengths of each company."
Pacific Aerospace & Electronics is a highly diversified manufacturing company that utilizes its expertise in materials science, process engineering and patented technologies to develop and market high performance products for global markets. The Company's primary businesses are organized into two operational and marketing units. The Electronics Group develops, manufactures and sells a broad range of precision components, filtering devices, electronic 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, cast aluminum and metal parts and component assemblies for commercial and military aircraft, heavy trucking and automotive uses. Markets served by Pacific Aerospace & Electronics include the aerospace, space, defense, medical, energy, transportation, telecommunications and general electronics industries.
The Company's common stock trades on the Nasdaq National Market System under the symbol "PCTH," and its warrants trade under the symbol "PCTHW".
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.
/CONTACT: Don Wright, President/CEO, or Nick Gerde, Vice President/CFO, of Pacific Aerospace & Electronics, 509-667-9600, or fax, 509-667-9696/ |
