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TORONTO, ONTARIO--(Marketwired - Mar 21, 2016) - Firan Technology Group Corporation (TSX:FTG), announced today that its US subsidiary FTG Aerospace Inc., based in Chatsworth California, has acquired substantially all of the assets of Airco Industries LLC (DBA Photo Etch), a Texas based designer and manufacturer of a full portfolio of cockpit products, electronic assemblies and simulator solutions.
The transaction was effected pursuant to an asset purchase agreement entered into between FTG Aerospace Inc., PhotoEtch, and PhotoEtch's parent company. Under the terms of the acquisition, FTG Aerospace Inc. has acquired modern and advanced processing equipment, product designs, process know-how, PhotoEtch's customer contracts as well as the working capital of PhotoEtch.
The purchase of PhotoEtch's assets has significant strategic benefit to FTG as it is expected that the acquisition will accelerate its penetration of a significant number of commercial aerospace, defense and simulator customers, primarily in the United States.
"We are excited about this deal as it enables FTG to continue its strategy of consolidating smaller manufacturers into a larger, more capable company that can compete on a world scale", commented Brad Bourne, President and Chief Executive Officer of FTG. He added, "As we built out our global footprint for our Aerospace business we realized that getting the utilization rates up quickly was an important but challenging goal, and this acquisition will obviously accelerate the process."
"For FTG, after a transition period, this transaction is expected to boost activity primarily in our FTG Aerospace - Chatsworth facility, with some smaller benefits to our other Aerospace facilities and should generate significant incremental contribution margin across our Aerospace business unit", added Mr. Joe Ricci, Chief Financial Officer.
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
FTG is an aerospace and defense electronics product and subsystem supplier to customers around the globe. FTG has two operating units:
|FTG Circuits is a manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation, defense, and high technology industries. FTG Circuits has operations in Toronto, Ontario, Chatsworth, California and a joint venture in Tianjin, China.|
|FTG Aerospace manufactures illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of aerospace and defense equipment. FTG Aerospace has operations in Toronto, Ontario, Chatsworth, California, Fort Worth, Texas and Tianjin, China.|
The Corporation's shares are traded on the Toronto Stock Exchange under the symbol FTG.
This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation's industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
Additional information can be found at the Corporation's website www.ftgcorp.com
Firan Technology Group Corporation
Bradley C. Bourne
President and CEO
(416) 299-4000 x 314
Firan Technology Group Corporation
Joseph R. Ricci
Vice President and CFO
(416) 299-4000 x 309