API Technologies [ATNY] yesterday said it has agreed to acquire Spectrum Control [SPEC], a provider of custom industrial products and electronic solutions for the global defense, aerospace, industrial and medical markets, for $270 million.
API said the deal will boost the range of products it can offer its customers.
Spectrum Control designs and manufactures specialty products such as coaxial and power filters as well as microwave components and systems, sensors and controls and power management systems. API designs and manufactures engineered systems, components and secure communications, and provides turnkey manufacturing and electronic assembly, test and build services to the global defense and aerospace industry.
API will acquire all of the outstanding equity of Spectrum for $20 per share. The company already has debt financing commitments of $215 million from Morgan Stanley.
Terms of the deal allow Spectrum to continue to solicit acquisition proposals through May 7. If API is successful, Spectrum will operate as a subsidiary of API. API’s board of directors has already approved the deal, which still requires U.S. regulatory approval.
Spectrum’s financial adviser on the deal is UBS Investment Bank and API’s financial advisers are Raymond James & Associates and Morgan Stanley.