Posted by Courtney E. Howard
EAST AURORA, N.Y., 1 Dec. 2011. Astronics Corp. (NASDAQ:ATRO), a provider of advanced, high-performance lighting, electrical power, and automated test systems for the global aerospace and defense markets, has acquired for $24 million in cash Ballard Technology Inc., a privately-held company in Everett, Wa., that designs and produces avionics interface solutions for defense and commercial aerospace applications. Ballard’s databus products can be used anytime avionics systems on an aircraft are upgraded, says a representative.
An additional purchase consideration of up to $5.5 million may be paid by Astronics if Ballard achieves certain revenue growth targets over each of the next five years. Ballard is projecting 2011 annual revenue of approximately $11.0 million, equating to a compound annual growth rate during the previous three years of more than 20 percent.
“We believe that the business has solid growth potential and our capabilities will complement their efforts,” says Peter J. Gundermann, president and CEO of Astronics. “In addition, Ballard is a solidly profitable business. Our acquisition price is roughly six times projected 2011 income before tax, and we expect the acquisition to be accretive in 2012.”
