Firan Technology Group Corporation (“FTG”) Announces the Signing of a Definitive Agreement to Acquire Holaday Circuits, a US Based Circuit Board Company
December 28 2022 - 8:27AM
Firan Technology Group Corporation (TSX:FTG), a leading provider of
electronic products and avionic sub-systems for the aerospace and
defense markets, announced it has entered into an agreement to
acquire Holaday Circuits, Inc. Holaday is based in Minnetonka,
Minnesota, a suburb of Minneapolis. Holaday is a manufacturer of
high technology circuit boards focused on the aerospace and defense
markets. The closing of the acquisition is subject to approval by
the Committee on Foreign Investment in the United States (CFIUS)
and other customary closing conditions. The companies will shortly
apply for CFIUS approval. The closing of the transaction is
expected to take place in the first quarter of 2023.
FTG will acquire 100% of Holaday for cash
consideration of approximately $24M CAD, subject to typical closing
adjustments. There is also an earn out provision of up to $6M CAD
based on future performance. Holaday had reported annual sales of
over $40M CAD in its audited financial statements prior to the
pandemic, dropping to $30M during the pandemic.
Wipfli Corporate Finance Advisors, LLC acted as
exclusive financial advisor and Messerli Kramer acted as legal
counsel to Holaday in connection with the sale.
“FTG had identified Holaday as an ideal fit with
our product and market focus. This acquisition, if completed, will
complement FTG’s existing facilities, add new customers and expand
our market share in the Aerospace and Defense market,” stated Brad
Bourne, President and CEO, FTG Corporation. He added, “The team at
Holaday has built a great business with a strong reputation in the
industry for quality products and excellent operational performance
and we are excited to have them as part of FTG. We intend to
continue to operate the business in its current facility.”
Dennis Pulanco, Holaday’s Executive Vice
President, commented, “With the passing of Marshall Lewis, my
business partner for 40 years, it was time for an ownership change
at Holaday. It was important to us that a new owner be aligned with
our values, and I am pleased with the sale of Holaday to FTG, as I
believe FTG will continue to build the business going forward to
the benefit of Holaday’s customers, employees and other
stakeholders.”
FTG also announces it has entered into a
sale/leaseback agreement for the facility in Chatsworth California
that was acquired earlier this year. The closing is subject to
completion of due diligence and various closing conditions. Closing
is expected in the first quarter of 2023 and proceeds would be
approximately $8.5M CAD, less commissions and other expenses. The
initial lease period will be through 2029, with two additional
five-year options to extend the lease.
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
FTG is an aerospace and defense electronics product and
subsystem supplier to customers around the globe. FTG has two
operating units:
FTG Circuits is a manufacturer of high
technology, high reliability printed circuit boards. Our customers
are leaders in the aviation, defense, and high technology
industries. FTG Circuits has operations in Toronto, Ontario,
Chatsworth, California, Fredericksburg, Virginia and a joint
venture in Tianjin, China.
FTG Aerospace manufactures and repairs
illuminated cockpit panels, keyboards and sub-assemblies for
original equipment manufacturers of aerospace and defense
equipment. FTG Aerospace has operations in Toronto, Ontario,
Chatsworth, California and Tianjin, China.
The Corporation's shares are traded on the Toronto Stock
Exchange under the symbol FTG.
FORWARD-LOOKING STATEMENTS
This news release contains certain
forward-looking statements. These forward-looking statements are
related to, but not limited to, FTG’s operations, anticipated
financial performance, business prospects and strategies.
Forward-looking information typically contains words such as
“anticipate”, “believe”, “expect”, “plan” or similar words
suggesting future outcomes. Such statements are based on the
current expectations of management of the Corporation and
inherently involve numerous risks and uncertainties, known and
unknown, including economic factors and the Corporation’s industry,
generally. The preceding list is not exhaustive of all possible
factors. Such forward-looking statements are not guarantees of
future performance and actual events and results could differ
materially from those expressed or implied by forward-looking
statements made by the Corporation. The reader is cautioned to
consider these and other factors carefully when making decisions
with respect to the Corporation and not place undue reliance on
forward-looking statements. Other than as may be required by law,
FTG disclaims any intention or obligation to update or revise any
such forward-looking statements, whether as a result of new
information, future events or otherwise.
For
further
information
please
contact:
Bradley C. Bourne, President and
CEO Tel:
(416) 299-4000, ext. 314Firan Technology Group
Corporationbradbourne@ftgcorp.com
Jamie Crichton, Vice President and CFOTel: (416) 299-4000, ext.
264Firan Technology Group Corporationjamiecrichton@ftgcorp.com
Additional information can be found at the
Corporation’s website www.ftgcorp.com
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