API Technologies Corp., a leading provider of high performance radio frequency (“RF”), microwave, millimeterwave, power, and security solutions announced that it has entered into a definitive agreement with a wholly owned subsidiary of Cobham plc, to acquire Aeroflex/Inmet, Inc. and Aeroflex/Weinschel, Inc. Inmet and Weinschel have each been in business for more than 50 years, and each manufactures and sells RF and microwave products for defense, space, avionics, wireless, and test and measurement applications.
Pursuant to the terms of the definitive agreement, API will acquire 100% of the shares of the Acquired Companies for a total purchase price of $80.0 million. This transaction is subject to customary closing conditions, including Hart Scott Rodino. API will finance the acquisition with an $85.0 million add-on to its existing term loan with Guggenheim Corporate Funding LLC. Combined, Inmet and Weinschel generated revenue of $51.4 million and EBITDA margins over 20% for the year ended December 31, 2014. The transaction is anticipated to close within 60 days once customary regulatory approvals have been received.
Robert Tavares, President and Chief Executive Officer of API Technologies, stated: “The acquisitions of Inmet and Weinschel strengthen API’s product portfolio and scale in the RF, microwave, and microelectronics markets, and are immediately accretive to API’s cash flow and earnings. The Inmet and Weinschel brands are well recognized for innovative and reliable Microwave and RF solutions for Commercial Aerospace, Communications and Defense applications. We are very excited to welcome the Inmet and Weinschel employees to the API business. The addition of the Inmet and Weinschel products to our existing portfolio will enable us to better serve our customer needs with a broader set of component and subsystem solutions.”
Learn more about API Technologies and our products at www.apitech.com.