McKean Defense Group last week said it has agreed to acquire Mikros Systems Corp. [MKRS], a small provider of advanced maintenance systems for the Navy and industrial and commercial applications.
McKean said it will pay $4.6 million in cash and that the transaction is expected to close in the first quarter of 2021. The boards of both companies have already approved the deal.
McKean, which is based in Philadelphia, said the acquisition will expand its work on the Navy’s Littoral Combat Ship platform and add ship system monitoring capabilities.
“With the added capabilities and skills from the Mikros acquisition, McKean will strengthen our support to the LCS platform and add significant combat systems monitoring and diagnostic analytics to our strategic offerings,” Joseph Carlini, McKean’s CEO, said in a statement.
Mikros CEO Tom Meaney said that “McKean gives Mikros a much larger platform to expand our combat systems maintenance product lines with the U.S. Navy, while increasing reliability and reducing sustainment costs.”
Mikros, which is based in Princeton, N.J., had $6.4 million in sales in 2019, down from $8.6 million in 2018. The decline was due to delays in contract awards and no sales of its ADEPT diagnostic portable test sets.
Spouting Rock Capital Advisors served as Mikros’ financial adviser on the deal.