Boston, MA 03/06/2014 (wallstreetpr) – Astronics Corp (NASDAQ:ATRO) announced the completion of all the assets and liabilities of EADS North America’s Test and Service segment on Feb 28 , 2014.
The acquisition was a $53 million cash deal for Astronics, a leading provider of advanced technologies for the global aerospace and defense industries. In addition, it included an initial net working capital adjustment of $17 million. The acquired division will be reported in Astronics’ Test systems division.
Amendments
The acquisition was completed on Friday, Feb 28, when the company issued a press release announcing the completion of the process. On Jan 21, 2014, Astronics had first reported that it had gotten into a definitive agreement to take over EADS T&S. In regards to the funding of the merger, Astronics Corp (NASDAQ:ATRO) exercised its option to increase the maximum amount of the five year revolving facility in accordance with the Credit Agreement from $75 million to $125 million. It used %58 million on Feb 28 to finance the acquisition. It now is left with $56 million which is can avail under the credit facility at Feb 28, 2014.
The Amendment made also, for a fixed period of time, increase the maximum leverage ratio allowed under the agreement from 1.00 to 4.00 for the fiscal quarters ending March 31 and June 30. After the expiry of the term, the maximum leverage ratio will remain unaltered and will be in accordance with the current requirements under the Credit Agreement.
About EADS T&S
EADS T&S was established in 1050 and was known as Racal Electronic Group. Located in Irvine, California, it is a leading provider of efficient engineered automatic test system, abbreviated commonly as ATS, subsystems and equipment for the semi-conductor, user electronics and commercial aerospace and defense industries. The company provides complete customized testing systems and also offers support services for the markets. EADS T&S also designs and makes test instruments under the highly popular equipment brand Racal and Talon. Astronics Corp (NASDAQ:ATRO) has a workforce of 120 employees currently.
