Moog Announces Space Propulsion Acquisition Closing
31 July 2012
East Aurora, NY–Moog Inc. (NYSE: MOG.A and MOG.B) announced today that it has completed the acquisition of American Pacific Corporation’s (NASDAQ: APFC) In-Space Propulsion business for $46 million in cash. The In-Space Propulsion business, with locations in New York, California, Ireland and the United Kingdom, is a developer and manufacturer of liquid propulsion systems and components for satellites and missile defense systems.
The acquisition provides Moog with additional capabilities, specifically in spacecraft controls. "The In-Space Propulsion business complements our existing components and expands our propulsion systems capabilities,” stated Jay Hennig, President of Moog’s Space and Defense Group. “We believe that this will expand our European presence and provide additional scale to serve our customers with a complete satellite control offering."
The acquisition is expected to add approximately $8 million to Moog’s sales for the remaining two months of the 2012 fiscal year and $50 million to sales for 2013. As a result of first year purchase accounting adjustments, the acquisition is expected to be neutral to previously forecasted fiscal year 2012 and 2013 earnings per share estimates.
About Moog Inc.
Moog Inc. is a worldwide designer, manufacturer, and integrator of precision control components and systems. Moog’s high performance systems control military and commercial aircraft, satellites and space vehicles, launch vehicles, missiles, automated industrial machinery, wind energy, marine and medical equipment. Additional information about the company can be found at www.moog.com.
About American Pacific Corporation
AMPAC is a leading custom manufacturer of fine and specialty chemicals. AMPAC supplies active pharmaceutical ingredients and advanced intermediates to the pharmaceutical industry. For the aerospace and defense industry, AMPAC provides specialty chemicals used in solid rocket motors for space launch and military missiles. AMPAC produces clean agent chemicals for the fire protection industry, as well as electro-chemical equipment for the water treatment industry. Additional information about can be found at www.apfc.com.
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• we depend heavily on government contracts that may not be fully funded or may be terminated, and the failure to receive funding or the termination of one or more of these contracts could reduce our sales and increase our costs;
• we make estimates in accounting for long-term contracts, and changes in these estimates may have significant impacts on our earnings;
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• contracting on government programs is subject to significant regulation, including rules related to bidding, billing and accounting kickbacks and false claims, and any non-compliance could subject us to fines and penalties or possible debarment;
• the loss of Boeing or Lockheed Martin as a customer or a significant reduction in sales to either company could adversely impact our operating results;
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• our new product and research and development efforts may not be successful, which would result in a reduction in our sales and earnings;
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• our sales and earnings growth may be reduced if we cannot implement our acquisition strategy;
• we may incur losses and liabilities as a result of our acquisition strategy;
• our operations in foreign countries expose us to political and currency risks and adverse changes in local, legal, tax and regulatory schemes;
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