Héroux-Devtek completes acquisition of CESA

Héroux-Devtek a leading international manufacturer of aerospace products, has successfully completed the acquisition of Compañia Española de Sistemas Aeronáuticos, S.A. (CESA), a subsidiary of Airbus SE for a purchase price of €137 million (approximately CA$206 million) enterprise value, including CESA’s net outstanding debt of €23 million euros (approximately CA$35 million), subject to customary closing adjustments.

The transaction was funded through a combination of a CA$50 million seven-year unsecured subordinated term loan provided by Fonds de solidarité FTQ, the Corporation’s revolving credit facility and available cash on hand. In connection with this acquisition, the Corporation’s credit facility was amended, increasing the borrowing limit toUS CA$250 million from CA$200 million.

Headquartered in Madrid, Spain, CESA is a leading European provider of fluid mechanical and electromechanical systems for the aerospace industry. Its main product lines include actuation and hydraulic systems as well as landing gear products.

Management is updating its sales guidance for fiscal 2019 to reflect the CESA acquisition. Management now expects sales for fiscal 2019 to be in the range of CA$460 million to CA$470 million, representing an increase of approximately 20% over last year. Capital expenditures are expected to be approximately US$20 million.

Management is also issuing new long-term sales growth guidance reflecting both the Beaver acquisition completed last July and the CESA acquisition. Management expects fiscal 2022 sales in the range of CA$620 million to CA$650 million.

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