American Pacific Corporation (AMPAC), a US maker of speciality chemicals, has agreed to sell its in-space propulsion business to Moog, a local supplier of aircraft and missile components, for US$46m in cash.
The in-space propulsion business focuses…
American Pacific Corporation (AMPAC), a US maker of speciality chemicals, has agreed to sell its in-space propulsion business to Moog, a local supplier of aircraft and missile components, for US$46m in cash.
The in-space propulsion business focuses on the development and manufacturing of liquid propulsion systems and components for satellites and missile defence systems.
Commenting on the transaction, Joe Carleone, AMPAC CEO, said: “Our goal was to find a strategic buyer that could continue to grow the business and we feel that Moog is the right partner for the business.
“The divestiture is a strategic shift that allows AMPAC to place more focus on the growth and performance of its pharmaceutical-related product lines.”
Jay Henning, the president of Moog’s Space and Defense Group, added that the in-space propulsion business “complements our existing components and expands our propulsion systems capabilities. We believe that this acquisition will expand our European presence and provide additional scale to serve our customers with a complete satellite offering.”
Moog particularly focuses on motion simulators, chemical and electric propulsion feed systems, as well as solar array deployment and drive systems.
For Q2 2012, Moog had net earnings of US$35m, up 16% compared with the same period last year, and sales of US$625m, an increase of 9% on Q2 2011.
According to AMPAC, sales for the in-space propulsion unit in the year to 31 March 2012 reached US$51m.
The deal is expected to close by 30 September 2012.
AMPAC has hired Janes Capital Partners as financial adviser and Morrison & Foerster as legal adviser. Hodgson Russ is acting as legal adviser to Moog.
