Via themicrocapspeculator.blogspot.com:
Air Industries Group : AIRI.OB announced today that it completed the acquisition of Welding Metallurgy, which it had purchased for approximately $6 million in cash, debt and restricted stock. Welding Metallurgy is a specialty welding and metallurgical engineering provider with trailing twelve month revenues of approximately $5 million. Air Industries claims the acquisition will be immediately accretive to earnings and could create synergies and cross-selling opportunities. CEO Peter Retalliata explained:
“The acquisition of Welding Metallurgy is an important milestone for Air Industries Group as it establishes the third platform in our acquisition and consolidation strategy that will drive our long term, synergistic growth. Welding Metallurgy significantly increases our core competencies and will serve as the base of our Welding and Fabrication Platform. It is a logical complement to our existing Contract Manufacturing operations and our Materials Distribution operations. Collectively, we have successfully put the necessary infrastructure in place to move up the aerospace supply chain. In other words, we are migrating from a basic contract manufacturer to a provider of comprehensive integration services to the industry’s leading prime manufacturers, with a particular focus on flight safety and other critical componentry, including landing gear, arresting gear, flight controls, and other critical safety and high performance assemblies.”
With the second key acquisition of 2007 now complete, and a strong backlog that should drive second-half demand, all eyes will be on the company’s third quarter earnings report to see if the combined entity can leverage profits to the bottom line.
DISCLOSURE: Long AIRI.OB.
$0.27 (08/28/07)
