Aug 12 2008
Standex International Corporation today announced that it has acquired privately owned BG Laboratories, a leading manufacturer of custom-designed magnetics for the aviation, aerospace and military end-markets, in a cash transaction valued at approximately $1.6 million.
Binghamton, NY-based BG Laboratories will be integrated into the Company’s Engineered Products Group as part of Standex Electronics. Standex anticipates that the acquisition will be accretive to earnings on a GAAP basis in the first 12 months of combined operations1. In the 12 months prior to the acquisition, BG Laboratories generated revenues of approximately $2.6 million and EBITDA of $350,000.
Acquiring BG Laboratories will enable Standex1 to:
- Expand its presence in the market for custom designed, high-end magnetics products;
- Leverage BG Laboratories’ established relationships with customers in the aviation, aerospace and military end markets;
- Capitalize on cross-selling opportunities;
- Sell a broader range of products to common customers; and
- Enhance margins through cost synergies.
“Our acquisition of BG Laboratories expands Standex Electronics’ customer base in the aerospace and defense market segments and increases our market share in the higher-margin custom engineered magnetics market,” said Roger Fix, Standex president and chief executive officer. “BG Laboratories serves an impressive list of blue chip customers that use its high-reliability products for mission critical applications.
We expect to achieve significant sales synergies since we will now be able to sell a much broader spectrum of custom-designed magnetics for a wider range of applications at existing and new customers. Furthermore, combining BG Laboratories with our Standex Electronics operations provides us with opportunities for cost synergies.
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