CPI Aerostructures Completes Acquisition of Welding Metallurgy, Inc.
December 20 2018 - 4:05PM
CPI Aerostructures, Inc. (“CPI Aero”) (NYSE American: CVU) today
announced that it has completed its acquisition of Welding
Metallurgy, Inc. (“WMI”) from Air Industries Group, Inc. in a
transaction valued at approximately $9.0 million. The Company
expects to complete the integration of WMI’s operations into its
Edgewood, N.Y., headquarters by the end of the first quarter of
2019.
WMI provides specialty welded products and assemblies, large
diameter tube bending and integrated electronic assemblies, among
other capabilities, to a variety of customers, predominantly within
the defense and aerospace markets. WMI’s defense customers include
Sikorsky, Lockheed Martin, Northrop Grumman, Raytheon, and GKN
Aerospace, among others.
CPI Aero President and Chief Executive Officer Douglas McCrosson
stated, “We are excited to announce the closing of the acquisition
as it ushers in a new era of expanded capabilities and an increased
opportunity set that we expect to lead to meaningful revenue and
earnings growth starting in 2019. The addition of WMI’s products
and processes, particularly with respect to manufacturing of
electronic assemblies, wire harnesses, and tube assemblies, not
only provides a new avenue for top line growth, it also allows us
to provide more CPI Aero content within our integrated structural
assemblies thereby enhancing its value proposition to new and
current customers. Finally, consolidation of WMI’s operations and
personnel into our facility will increase absorption of fixed
overhead costs, improve the competitiveness of our price proposals
and could expand margins on current programs.”
The Company expects to provide financial guidance for fiscal
2019 that will include WMI’s contribution with the publication of
its fourth quarter and year-end 2018 financial results in March
2019.
About CPI AeroCPI Aero is a U.S. manufacturer
of structural assemblies for fixed wing aircraft, helicopters and
airborne Intelligence Surveillance and Reconnaissance pod systems
in both the commercial aerospace and national security markets.
Within the global aerostructure supply chain, CPI Aero is either a
Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major
Tier 1 manufacturers. CPI also is a prime contractor to the U.S.
Department of Defense, primarily the Air Force. In conjunction with
its assembly operations, CPI Aero provides engineering, program
management, supply chain management, and MRO services. CPI Aero is
included in the Russell Microcap® Index.
The above statements include forward looking statements that
involve risks and uncertainties, which are described from time to
time in CPI Aero's SEC reports, including CPI Aero's Form 10-K for
the year ended December 31, 2017, and Form 10-Q for the three-month
period ended March 31, 2018, June 30, 2018, and September 30,
2018.
CPI Aero® is a registered trademark of CPI Aerostructures, Inc.
For more information, visit www.cpiaero.com, and follow us on
Twitter @CPIAERO.
|
|
|
Contact: |
|
|
Vincent
Palazzolo |
|
Investor Relations
Counsel: |
Chief Financial
Officer |
|
LHA |
CPI Aero |
|
Jody Burfening/Sanjay
M. Hurry |
(631) 586-5200 |
|
(212) 838-3777 |
www.cpiaero.com |
|
cpiaero@lhai.com |
|
|
www.lhai.com |
CPI Aerostructures (AMEX:CVU)
Historical Stock Chart
From Mar 2024 to Apr 2024
CPI Aerostructures (AMEX:CVU)
Historical Stock Chart
From Apr 2023 to Apr 2024