Ducommun Inc. [DCO] yesterday said it has completed its $338 million acquisition of LaBarge, Inc., boosting its size as a supplier of structural and electronic assemblies to the aerospace and defense industries and adds industrial, natural resource and medical customers.
“As a Tier 2 supplier of structural and electronic assemblies for the aerospace and defense, industrial, energy and medical markets, we look forward to taking the next steps to expand our customer base, increase organic growth, and improve margins and cash flow generation,” Anthony Reardon, Ducommun’s president and CEO, said in a statement. “This is a watershed moment for Ducommun and one that we see strengthening the company and enhancing value for our stockholders going forward.”
The acquisition strengthens Ducommun’s position on two military aircraft programs, the F-35 Joint Strike Fighter and the Army’s UH-60 Black Hawk helicopter.
The transaction nearly doubles the size of Ducommun, which said when the deal was announced that the combined operation would have proforma sales of over $730 million this year if the two businesses had been together on Jan. 1 (Defense Daily, April 5).