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Monday, December 10, 2012

LMI Aerospace, Valent Aerostructures Form Acquisition Agreement

LMI Aerospace has signed an agreement to acquire Kansas City, Mo.-based Valent Aeostructures—provider of structural components for OEM and Tier 1 airframe manufacturers—for $237 million.

Valent has provided machined parts and sub-assemblies for major commercial and business jet manufacturers such as Boeing and Gulfstream.

"The acquisition of Valent is transformational for LMI and represents a major step in fulfilling LMI's strategic objectives," said Ronald S. Saks, CEO of LMI. “Another important benefit of this combination is increased content on key platforms. Spirit AeroSystems is Valent's largest customer providing over 50 percent of Valent's sales in 2012. The Boeing 737 platform represents most of these sales. As a result, over 47 percent of Valent's projected 2013 revenue is expected to be derived from work on the highly desirable Boeing 737 platform. When combined with the Boeing 737 products currently built by LMI, the annual shipset value of the Boeing 737 model is expected to be approximately $240,000 in 2012.”

The transaction is subject to regulatory approvals, though LMI said it expects to complete the acquisition by the end of the year.  The latest agreement marks LMI's second major acquisition since August, when it acquired TASS Inc. More

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