ST. LOUIS, Mo. -- LaBarge, Inc. (NYSE Amex: LB), a provider of electronics manufacturing services (EMS), and Ducommun Incorporated (NYSE: DCO), a provider of engineering and manufacturing services to the aerospace and defense industry, announced today that they have entered into a definitive agreement under which Ducommun will acquire LaBarge for a purchase price of $19.25 per share in cash. The transaction is valued at approximately $340 million, including debt assumed and net of cash acquired. The acquisition requires LaBarge stockholder approval and is subject to customary closing conditions. The transaction is expected to be completed in late June 2011. Certain officers and directors have agreed to vote a number of common shares representing approximately 19 percent of the voting power of the Company in favor of the merger.
Once the transaction is completed, LaBarge will be combined with Ducommun’s Technologies subsidiary, which will be renamed Ducommun LaBarge Technologies. The unit will be led by a senior team of individuals from both entities with LaBarge’s chief operating officer, Randy Buschling, serving as senior vice president of the division.
Craig LaBarge, chairman of the board, chief executive officer and president of LaBarge, said, “Following a very comprehensive exploration of strategic alternatives, LaBarge’s Board of Directors voted unanimously to recommend acceptance of Ducommun’s proposal to our stockholders. We believe this transaction creates significant value for LaBarge stockholders and new opportunities for our customers and employees. Combined, the two companies have complementary capabilities that we believe will be very appealing to many of our key customers. LaBarge has an excellent reputation for providing high-performance electronic and electromechanical products, and we look forward to continue doing so as part of the Ducommun team.”
Anthony J. Reardon, president and chief executive officer of Ducommun, added, “On behalf of everyone at Ducommun, let me state how important we view this acquisition as we extend a warm welcome to all members of the LaBarge team. We firmly believe this transaction will be a transformational event for both companies, combining two great organizations with common cultures and a shared vision. LaBarge, with its market leadership, proven management, and strong workforce, will bolster our technology business and, along with our AeroStructures operations, solidify our position as a world class manufacturing services company. Working together, we see a bright future for Ducommun LaBarge Technologies in serving our customers with access to new markets and global growth channels.”
Stifel Nicolaus Weisel is acting as exclusive financial advisor and Armstrong Teasdale and Bryan Cave LLP are acting as legal counsel to LaBarge, Inc.