The private equity firm Arlington Capital Partners said on Tuesday that its portfolio company United Flexible has agreed to acquire Kreisler Manufacturing Corporation [KRSL], a manufacturer of precision metal components and assemblies used in commercial and military aircraft engines and industrial gas turbines.
Illinois-based United Flexible is paying $18 per share in cash for New Jersey-based Kreisler. The deal is expected to close during the second quarter of 2016. The combined company will have about 700 employees.
Arlington Capital said the pending acquisition will further United Flexible’s strategy of becoming the leading designer and manufacturer of high pressure and high temperature gas and fluid conduits into mission critical systems for OEMs.
United Flexible design, develops and manufactures engineered solutions for the transfer of fluids and gases in extreme environments.
“As one of the few established fixed tube and complex conduit suppliers to commercial and military aircraft engine and IGT OEMs, Kreisler complements United Flexible’s product line and uniquely supports United Flexible’s vast growth potential as a whole,” United CEO John Devine said in a statement.
Michael Stern, president and CEO of Kreisler Manufacturing, will remain with the company as president of Kreisler.
Kreisler had $30.5 million in sales in its fiscal year ended June 2015 and $958,000 in net income.
Kreisler’s financial adviser on the deal is Sun Trust Robinson Humphrey.