RANCHO CUCAMONGA, Calif., 22 Aug. 2008. EMRISE Corp., a multinational manufacturer of proprietary electronic devices and communications equipment for aerospace, defense, industrial, and communications applications, has completed the acquisition of Eatontown, N.J.-based Advanced Control Components Inc. (ACC). ACC is a supplier of high-performance radio-frequency (RF) and microwave devices and subsystems that for more than 26 years has been serving the military, aerospace, commercial, and instrumentation markets.
Chairman, president, and chief executive officer Carmine T. Oliva called ACC the most important acquisition in the history of the company and a key strategic step in positioning EMRISE for rapid expansion of its business. ACC provides EMRISE with the geographic presence, resources, and new products to grow domestically and internationally and to increase sales to United States military and other government and commercial organizations.
"In addition to strengthening our organic operations, this acquisition adds significantly to our optimism about the future success of EMRISE," Oliva says. "We believe the addition of ACC will substantially strengthen our future operating results and overall financial condition. In the 12 months following closing, we expect ACC to add $17 million to $18 million in revenues, increase overall gross margins and make a major contribution to consolidated net income and earnings per share. We expect ACC's profit contribution to begin with a small positive impact during the third quarter of 2008 and more material net income contributions beginning in the fourth quarter of 2008 and going forward."
