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Astronics announces completion of USD31.2 million acquisition of PGA Electronic
Today, leading provider of advanced technologies for the global aerospace and defense industries Astronics Corporation announced that it had finalized its acquisition of PGA Electronic on December 5, Thursday. The acquisition deal of the seat motion and lighting systems manufacturer was worth USD31.2 million. Under the terms of the cash-and-share acquisition deal, Astronics paid USD17.5 million in cash and issued 264,168 shares of its common stock. The market value of Astronic's issued common shares at the time of the trading close was USD13.7 million.
Astronics has announced the acquisition deal on November 4, when it said it had entered into a definitve agreement to acquire the Châteauroux, France-based company.
Astronics had been developing advanced, high performance lighting, electrical power and automated test systems for companies belonging in the aerospace and defense industries worldwide.
PGA, on the other hand, is Europe's leading provider of in-flight entertainment and communication systems, and also a supplier of cabin management systems for private VVIP aircraft. 90% of its sales are accounted in Europe, and generates similar margins to those of Astronics.
Astronics' original offer of USD28.5 million signaled the fact that the final offer was a premium to the US-based company's strategic consolidation of its business with that of PGA's. According to the press release, the strategy of Astronics is to maintain and develop its technical leadership positions in its chosen markets and leverage those positions to grow out of the markets it is already dominating into new markets it intends to lead via its strategic partnerships with leaders of such markets.
CEO of Astronics Peter J. Gundermann commented about the acquisition earlier, of which his statement read, "The addition of PGA to Astronics deepens our reach into the European aircraft market while extending our lighting and power technologies. The acquisition complements well our other lighting, cabin electronics and communication capabilities."