Moog Inc. (NYSE: MOG.A) (NYSE: MOG.B) announced today that it has acquired Broad Reach Engineering Company (BRE), located in Golden, Colorado. The purchase price is approximately $48 million, including $37 million in cash, a $6 million note payable and a $5 million potential earn out payment, based on the achievement of certain financial targets.
Broad Reach, founded in 1997, is a leading designer and manufacturer of spaceflight electronics and software for aerospace, scientific, commercial and military missions. The company also provides ground testing, launch and on-orbit operations. Trailing twelve month revenues were approximately $27 million.
"The acquisition of Broad Reach brings several very strong products to our space portfolio, as well as an experienced team of individuals," said Jay Hennig, President of Moog's Space and Defense Group. "Their engineering team brings extensive spaceflight heritage, industry expertise and entrepreneurial spirit to Moog. Our ability to provide complete solutions to our customers is strengthened by Broad Reach's avionics, software and mission design heritage."
Sales are expected to add approximately $32 million to Moog's 2013 fiscal year ending on September 28, 2013. The acquisition is expected to be neutral to Moog's 2013 earnings per share due to first year purchase accounting adjustments.
Moog Inc. is a worldwide designer, manufacturer, and integrator of precision control components and systems. Moog's high-performance systems control military and commercial aircraft, satellites and space vehicles, launch vehicles, missiles, automated industrial machinery, wind energy, marine and medical equipment. Additional information about the Company can be found at www.moog.com.