TAT Technologies(TATTF) today announced a purchase agreement to acquire Piedmont Aviation Component Services.
Piedmont, a private company based in Kernersville, North Carolina, deals in the overhaul, repair, maintenance, service and supply of propellers, landing gear and APU/LRU units in the regional market.
Under the terms of the acquisition, TAT will pay $5.5 million for Piedmont and agreed to repay $9.5 million of outstanding indebtedness.
TAT will fund this acquisition through equity and bank loans, and is transacting the deal through its fully-owned, Oklahoma-based subsidiary Limco Airepair Inc. TAT and Limco stated that the acquisition significantly increased their presence in the aircraft overhaul, repair and maintenance markets.
Piedmont had revenues of approximately $27 million in 2004.
"We now are a major participant in the overhaul, repair and maintenance industry," TAT EVP Israel Ofen stated today. "The addition of Piedmont should be accretive to our revenues in 2005."
Published by Globes [online], Israel business news - www.globes.co.il - on Wednesday, May 25, 2005