Ducommun will receive $19.25 a share and will cover LaBarge's outstanding debt of $30 million dollars.
The acquisition is expected to double Ducommun's revenue base, improve the company's position as a tier 2 leader in both aero structures and electronics, and bring access to new customers and markets.
President and CEO of Ducommun Anthony J. Reardon said the acquisition solidifies Ducommun as a premiere Tier 2 provider of both structural and electronic assemblies. He added, “The addition of LaBarge to Ducommun forms one of the largest global aerospace and defense providers for EMS for high margin, low volume/high mix applications.“
The transaction is pending with subject to approval by LaBarge shareholders and certain customary conditions. LaBarge will be combined with one of Ducommun's subsidiaries and renamed Ducommun LaBarge Technologies. The division will be lead by LaBarge's current COO Randy Buschilng.