Ducommun Inc. [DCO] on Thursday said it has acquired Magnetic Seal Corp. (MagSeal) in a $69.5 million transaction that adds magnetic seals to its product portfolio for aerospace and defense applications.
MagSeal, which is based in Rhode Island, has less than 100 employees. The company’s specialty seals perform in high-speed, high-vibration environments and other extreme conditions. The seals are used on more than 50 commercial and military aircraft programs, including the AH-64 and CH-53K helicopters, F-15 and F/A-18 fighters, C-130 transports, A320 and B-737 passenger planes, and Cessna Citation jets.
The acquisition is part of California-based Ducommun’s strategy of acquiring companies with niche products with good market penetration and healthy revenue outlook.
“I am delighted to welcome the MagSeal business and its team to Ducommun as we continue our strategy of adding high value-added A&D engineered products with recurring aftermarket to our portfolio,” Stephen Oswald, Ducommun’s chairman, president and CEO said in a statement. “MagSeal is an excellent business with a strong reputation and further advances the company’s industry offering and I look forward to the many years of growth ahead.”
MagSeal’s financial adviser on the deal was Houlihan Lokey. Ducommun said it financed the acquisition with cash on hand and part of its credit facility.