Closing of the Beaver Aerospace & Defense Inc. acquisition

Héroux-Devtek Inc. today announced that it has successfully completed the acquisition of all the shares of Beaver Aerospace & Defense Inc. and its wholly-owned subsidiary PowerTHRU Inc. (“Beaver”), from Phillips Service Industries Inc. for a purchase price of US$23.5 million including a US$3.5 million balance of sale payable over the next two years and, subject to final working capital adjustments. The transaction was funded through the Corporation’s available cash on hand.

“We are very pleased to have completed this acquisition which will allow us to broaden our existing aerospace and product offering into ball screws and actuation systems and will expand our footprint in North America,” said Héroux-Devtek President & CEO, Gilles Labbé. “More specifically, we expect to leverage Beaver’s relationships with industry-leading OEMs and benefit from cross-selling and operating efficiencies. We are proud to welcome the Beaver team to the Héroux-Devtek family and expect to successfully continue to grow the business together.”

Founded in 1952, Beaver is a vertically integrated manufacturer with a growing portfolio of company-designed products. It designs and manufactures custom ball screws from a variety of materials based on customer and application requirements as well as designs, manufactures, assembles and tests electromechanical actuators. Beaver operates three facilities totalling 82,200 square feet in Livonia, Michigan and employs approximately 100 people. It generates annual revenues of approximately US$30 million, of which about two thirds are derived from the defence sector. 
Under the terms of the agreement, Héroux-Devtek will manufacture, assemble and deliver complete landing gear systems for the Gripen E. Operations will be mainly carried out from the Corporation’s facilities located in the United Kingdom. The design and development of the landing gear is currently being finalized by Héroux-Devtek’s U.K.-based engineering team.
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