- Both companies supply OEM and Tier 1 airframe builders
- LMI completed a debt refinancing, arranged $300 million in credit
Machining aircraft parts in aluminum at Valent Aerostructures in Washington, Mo.
LMI Aerospace Inc. has acquired Valent Aerostructures LLC, bringing together two manufacturers of aircraft structural components and assemblies. Both companies list OEM and Tier 1 airframe manufacturers in the aerospace and defense industries as their target customers.
Valent produces complex structural components, major sub-assemblies, and machined parts for several commercial, business jet and military platforms, including the Boeing 737, 747-8, 777, 787 and V-22 and the Gulfstream G650. Boeing has previously named Valent as a “Supplier of the Year,” and Spirit AeroSystems awarded its Platinum Supplier Award to Valent in 2011.
LMI Aerospace provides design engineering services as well as manufacturing for aircraft structural assemblies, kits and components. Its Aerostructures segment fabricates, machines, finishes, integrates, assembles and ‘kits’ formed close-tolerance aluminum, specialty alloy, and composite components and higher-level assemblies. It reportedly manufactures more than 30,000 products for integration into various aircraft platforms.
The purchase is estimated at $240 million, and included the acquisition of all the outstanding shares of Valent ($237 million) and certain “retained obligations” totaling $9.7 million. The final price is subject to adjustment for working capital and transaction expenses.
As part of cost, LMI issued approximately 784,000 shares of common stock to former Valent shareholders, a block valued at $15 million.
As it closed the sale, LMI completed a debt refinancing and entered into a new senior credit line worth $300 million (a $225-million term loan and a $75-million revolving credit facility.) LMI said these arrangements will be used to finance the Valent acquisition, refinance existing debt, and for general purposes.