Aerospace component developer EDAC Technologies has acquired electron beam welding specialist EBTEC Corporation for US$11m.
Approximately 85% of the purchase price was paid in cash with the remaining US$1.65m funded through the issuance of new EDAC…
Aerospace component developer EDAC Technologies has acquired electron beam welding specialist EBTEC Corporation for US$11m.
Approximately 85% of the purchase price was paid in cash with the remaining US$1.65m funded through the issuance of new EDAC common stock to two of EBTEC’s three shareholders. The latter is majority owned by UK-based Aquasium Technology, while president John Leveille and treasurer Vin Mammano both hold stakes.
To fund the cash portion of the transaction, EDAC has secured a triple tranche loan agreement with its relationship bank TD Bank. The debt is split between a US$2.12m term loan due 31 July 2013, a US$900,000 term loan due 30 June 2017, and a US$3.785m term loan due 30 June 2017. All the debt is secured against EDAC’s properties.
Founded in 1963, EBTEC pioneered the development of non-contact, energy beam technologies with the Apollo Space Program. The company now provides high-energy beam processing of aerospace, medical and industrial components using electron beam welders and lasers. In early August 2005, Aquasium purchased EBTEC from the Smiths Group. EBTEC recorded sales of US$12.6m in 2011.
