Moog Acquires Buffalo-Based Ethox International
January 23 2009 - 3:05PM
PR Newswire (US)
EAST AURORA, N.Y., Jan. 23 /PRNewswire-FirstCall/ -- Moog Inc.
(NYSE: MOG.A; MOG.B) announced today that it has acquired the stock
of Ethox International for $15.2 million in cash. Ethox is a
Buffalo, NY based medical products manufacturer and service
provider. The company produces proprietary medical devices and is
engaged in contract manufacturing of disposables for many of the
industry's leading medical device companies. Ethox also provides
microbiology, toxicology, and sterilization services. Ethox had
calendar year 2008 revenues of $27 million. In 2006, Moog entered
the medical devices market with the acquisition of Curlin Medical,
a manufacturer of electric ambulatory infusion pumps. Since then,
Moog has acquired the McKinley product line of disposable pumps,
the ZEVEX enteral feeding pumps, and most recently Aitecs syringe
pumps resulting in a full-range product offering of infusion
therapy equipment. In addition to the pumps, Moog produces the
disposable administration sets which are consumed every time a pump
is used. These disposables are produced and sterilized in
FDA-approved facilities. Ethox has a full complement of these
FDA-approved facilities in addition to microbiology and toxicology
laboratories. "The acquisition of Ethox broadens our product base
in disposables," said Martin Berardi, President of Moog's Medical
Devices Group, "and brings to our Company an experienced management
team and substantial production capabilities." Sales for Ethox will
be approximately $18 million for the balance of Moog's fiscal year
2009. This acquisition is expected to be neutral to Moog's earnings
per share for the year ending October 3, 2009 due to first year
purchase accounting adjustments. Moog Inc. is a worldwide designer,
manufacturer, and integrator of precision control components and
systems. Moog's high-performance systems control military and
commercial aircraft, satellites and space vehicles, launch
vehicles, missiles, automated industrial machinery, marine and
medical equipment. Additional information can be found at
http://www.moog.com/. Cautionary Statement Information included
herein or incorporated by reference that does not consist of
historical facts, including statements accompanied by or containing
words such as "may," "will," "should," "believes," "expects,"
"expected," "intends," "plans," "projects," "estimates,"
"predicts," "potential," "outlook," "forecast," "anticipates,"
"presume" and "assume," are forward-looking statements. Such
forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These statements are not guarantees of future performance and are
subject to several factors, risks and uncertainties, the impact or
occurrence of which could cause actual results to differ materially
from the expected results described in the forward-looking
statements. These important factors, risks and uncertainties
include (i) fluctuations in general business cycles for commercial
aircraft, military aircraft, space and defense products, industrial
capital goods and medical devices, (ii) our dependence on
government contracts that may not be fully funded or may be
terminated, (iii) our dependence on certain major customers, such
as The Boeing Company and Lockheed Martin, for a significant
percentage of our sales, (iv) the possibility that the demand for
our products may be reduced if we are unable to adapt to
technological change, (v) intense competition which may require us
to lower prices or offer more favorable terms of sale, (vi) our
significant indebtedness which could limit our operational and
financial flexibility, (vii) the possibility that new product and
research and development efforts may not be successful which could
reduce our sales and profits, (viii) increased cash funding
requirements for pension plans, which could occur in future years
based on assumptions used for our defined benefit pension plans,
including returns on plan assets and discount rates, (ix) a
write-off of all or part of our goodwill, which could adversely
affect our operating results and net worth and cause us to violate
covenants in our bank agreements, (x) the potential for substantial
fines and penalties or suspension or debarment from future
contracts in the event we do not comply with regulations relating
to defense industry contracting, (xi) the potential for cost
overruns on development jobs and fixed price contracts and the risk
that actual results may differ from estimates used in contract
accounting, (xii) the possibility that our subcontractors may fail
to perform their contractual obligations, which may adversely
affect our contract performance and our ability to obtain future
business, (xiii) our ability to successfully identify and
consummate acquisitions, and integrate the acquired businesses and
the risks associated with acquisitions, including that the acquired
businesses do not perform in accordance with our expectations, and
that we assume unknown liabilities in connection with the acquired
businesses for which we are not indemnified, (xiv) our dependence
on our management team and key personnel, (xv) the possibility of a
catastrophic loss of one or more of our manufacturing facilities,
(xvi) the possibility that future terror attacks, war or other
civil disturbances could negatively impact our business, (xvii)
that our operations in foreign countries could expose us to
political risks and adverse changes in local, legal, tax and
regulatory schemes, (xviii) the possibility that government
regulation could limit our ability to sell our products outside the
United States, (xix) product quality or patient safety issues with
respect to our medical devices business that could lead to product
recalls, withdrawal from certain markets, delays in the
introduction of new products, sanctions, litigation, declining
sales or actions of regulatory bodies and government authorities,
(xx) the impact of product liability claims related to our products
used in applications where failure can result in significant
property damage, injury or death and in damage to our reputation,
(xxi) the possibility that litigation may result unfavorably to us,
(xxii) our ability to adequately enforce our intellectual property
rights and the possibility that third parties will assert
intellectual property rights that prevent or restrict our ability
to manufacture, sell, distribute or use our products or technology,
(xxiii) foreign currency fluctuations in those countries in which
we do business and other risks associated with international
operations and (xxiv) the cost of compliance with environmental
laws. The factors identified above are not exhaustive. New factors,
risks and uncertainties may emerge from time to time that may
affect the forward-looking statements made herein. Given these
factors, risks and uncertainties, investors should not place undue
reliance on forward-looking statements as predictive of future
results. We disclaim any obligation to update the forward-looking
statements made in this report. DATASOURCE: Moog Inc. CONTACT: Ann
Marie Luhr, +1-716-687-4225, for Moog Inc. Web Site:
http://www.moog.com/
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