CUDAHY, Wis., Aug. 13 /PRNewswire-FirstCall/ -- Ladish Co., Inc.
(Nasdaq: LDSH) ( http://www.ladishco.com ) today announced it has entered into an
agreement to acquire via a merger Chen-Tech Industries, Inc. ("Chen-Tech").
Chen-Tech, located in Irvine, California, is a leading forger of jet engine
components. The closing of the transaction is anticipated to occur in the
third quarter of 2008. Although the final terms of the proposed transaction
have not been disclosed, the agreement contemplates that the merger value
of Chen-Tech will be approximately $59 million, which will be paid in a
combination of cash and Ladish common stock.
Commenting on the acquisition, Kerry L. Woody, President and CEO of
Ladish, said, "Chen-Tech, with projected 2008 sales of about $50 million,
is a highly regarded manufacturer of jet engine forgings for mutual
customers such as General Electric. Chen-Tech's expertise in forging
nickel-based and titanium components for smaller jet engines serving single
aisle, regional, and business aircraft is a great complement to Ladish's
expertise in forging larger engine components."
"Chen-Tech has been led by Shannon Ko for over 15 years," said Woody.
"Under his direction, the company has demonstrated an impressive level of
cost and technology leadership. Upon completion of the merger, Mr. Ko and
his team will continue to manage Chen-Tech. By combining Chen-Tech's
strengths with Ladish's material technology and global market position we
have laid a foundation to capitalize on long-term growth opportunities. The
merger provides Ladish with a broadened product offering and increased
market share on mutual aerospace programs. Working together, we believe
synergistic savings will further enhance long-term profitability. We expect
this transaction to be accretive to Ladish's 2008 earnings."
Ladish Co., Inc. is a leading producer of highly engineered technically
advanced components for the jet engine, aerospace and general industrial
markets. Ladish is headquartered in Cudahy, Wisconsin with operations in
Wisconsin, Connecticut, Oregon and Poland. Ladish common stock trades on
NASDAQ under the symbol LDSH.
This release includes forward-looking statements that are made pursuant
to the safe harbor provisions of the Securities Litigation Reform Act of
1995. Such forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
those projected in them. These risks and uncertainties include, but are not
limited to, uncertainties in the company's major markets, the impact of
competition, the effectiveness of operational changes expected to increase
efficiency and productivity, worldwide economic and political conditions
and the effect of foreign currency fluctuations.
SOURCE Ladish Co., Inc.
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Related links:
http://www.ladishco.com
CONTACT:
Wayne E. Larsen of Ladish Co., Inc.,
+1-414-747-2935, Fax: +1-414-747-2602; William J. Libby of Libby
Communications, +1-231-755-4111, Fax: +1-231-755-4144, for Ladish
Co., Inc.
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