LaBarge to be bought by Ducommun and become Ducommun Lebarge Technologies

Posted by John McHale
LOS ANGELES, 9 April 2011. Officials at Ducommun Inc. announced that the company will acquire LaBarge, Inc., in St. Louis, which specializes in electronics manufacturing services (EMS) in military and avionics markets.
LaBarge had revenue of $324 million for the twelve months ended January 2, 2011. The acquisition will nearly double Ducommun's revenue base, improve the company's position as a Tier 2 leader in both aerostructures and electronics, and bring access to new customers and markets, company officials say. Once the deal is completed, LaBarge will be combined with the company's Ducommun Technologies (DTI) subsidiary and renamed Ducommun LaBarge Technologies, under the leadership of LaBarge's current chief operating officer, Randy Buschling.
"This is one of the most strategically significant moves Ducommun has ever made, one which will transform our company into a larger, stronger entity focused on serving our customers in aerostructures and electronics," says Anthony J. Reardon, president and chief executive officer of Ducommun. "LaBarge is a leading supplier of critical electronics systems and subsystems for the aerospace and defense, industrial, energy and medical markets, with a compatible corporate culture, excellent management team, and outstanding workforce. Noted for having deep, long-term relationships with its customers, LaBarge also provides high-end engineering and design support, prototyping, program management, and testing.
"The acquisition solidifies Ducommun as a premier Tier 2 provider of both structural and electronic assemblies," he continues. "By adding LaBarge to Ducommun Technologies, we will form one of the largest global aerospace and defense providers of EMS for high margin, low volume/high mix applications. We look forward to this next, exciting stage of our development."
Pursuant to the terms of the definitive agreement, Ducommun will acquire all issued and outstanding shares of LaBarge at $19.25 per share in cash for a total purchase price of approximately $340 million, including the assumption of LaBarge's outstanding debt ($30 million as of January 2, 2011). The closing of the transaction is subject to the approval of LaBarge shareholders and certain other customary conditions, including expiration of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
In connection with the acquisition, Ducommun has fully committed debt financing provided by certain affiliates of UBS Investment Bank and Credit Suisse. UBS Investment Bank is acting as the exclusive financial advisor to Ducommun in the acquisition of LaBarge.