API Technologies to be Acquired by PE Firm
ORLANDO -- API Technologies today announced a definitive agreement to be acquired by an affiliate of private equity firm J. F. Lehman in a deal valued at $110.9 million.
The transaction, which is subject to customary closing conditions, has been unanimously approved by API's board and a majority of its stockholders and is expected to close in the second fiscal quarter of 2016.
Under the terms of the agreement, a newly formed affiliate of JFLCO will acquire all of the outstanding shares of API Technologies' common stock for $2 per share in cash in a merger transaction. The cash consideration represents a premium of approximately 98% to API's closing share price on Feb. 26, and a 74% premium to its weighted average trading price over the trailing 30 days.
API is a developer of RF, microwave and related components. It also offers electronics manufacturing services.
In a statement announcing the deal API president and chief executive Robert Tavares said, "The acquisition of our company by a JFLCO affiliate demonstrates support for the strategies and tactics the leadership team has put in place over the past 12 months. Under the new ownership, API will have the liquidity and capital structure needed to execute on our various business improvement and growth plans – creating a stronger business for our customers and employees alike."
Louis Mintz, partner at JFLCO, added, "We're pleased to have API Technologies join our expanding array of aerospace, defense, and maritime portfolio companies. We believe API has tremendous potential given its strong product portfolio and superior RF/microwave technology, and we look forward to working with them to grow the business going forward."
API has been plagued by profitability problems for some time. The company grew in the 2000s through acquisitions of RTI Electronics, SenDec, and others. A major shareholder was also involved in a successful fight for control of the board of fellow EMS IEC Electronics a year ago.
