Cavotec to buy US-based INET Airport Systems for up to about $30m

Aug. 17 (BusinessDesk) - Cavotec MSL Holdings will buy US-based INET Airport Systems for up to about $30 million in shares and cash.

The global engineering group which is NZX-listed and owns Christchurch-based MoorMaster said it will issue 7.7 million shares at NZ$3.30 per share and will pay an earn-out of up to US$4 million. The company didn't provide details but said the earn-out will be paid “upon fulfillment of certain terms and conditions.”

It said INET was established in 1967 and is headquartered in Fullerton, California with annual revenues of more than US$35 million “with levels of profitability in line with Cavotec MSL's targets.”

INET manufactures stationary and mobile aircraft servicing equipment and its customers include Lockheed, Boeing, NASA, Northrop Grumman and many international airports including Miami, Bangkok, Cairo, Toronto and Vancouver.

Former owner and chief executive Mike Colaco will join Cavotec's management team and will assume worldwide responsibility for its airports division, the company said.

“We plan to use INET technologies globally as a complementary part of our current product offering, including applications for the ports and maritime industry,” said Cavotec chief executive Ottonel Popesco.

The acquisition will take Cavotec's North American workforce to nearly 200 working from three manufacturing facilities and from offices in Chicago, Charlotte, Houston, Los Angeles, Pittsburgh, Toronto and Vancouver.

Cavotec said INET's techniques and equipment to operate electrical systems for parked commercial aircraft from a central facility is of particular interest.

Cavotec and INET began working together two years ago when INET's GSE systems were incorporated into Cavotec's range of services on a project for the supply of pre-conditioned air and power systems for Dubai International Airport's dedicated Emirates Airlines A380 terminal.

Cavotec shares closed yesterday at $2.65. They have been drifting down from $3.40 late last year.

(BusinessDesk)

BUDGET 2012:
Parliament Debate Live - Video Of Budget 2011
Keith Ng Interactive Graphic: How the Budget Breaks Down
BUDGET 2012 - FULL COVERAGE: Reports / Analysis - Press Kit - Reaction (from everybody) - Previews (from everybody) - Pre-Budget Announcements

Gordon Campbell: On the Budget’s Spreadsheet Victories

It wasn’t as if expectations were sky high, exactly. Chances are, it was always more likely that we’d be seeing Bigfoot rampage through the Beehive lock-up than catch a glimpse of a credible growth agenda from this government. More >>

Sludge Budget Report - Short The Dollar! MEMO: To international bankers FROM: C.D. Sludge Please short the dollar! It'll be good for both you and us. And you know you want to. Greexit, Eurogeddon... watch out... flight to quality and all that. Follow your instincts. The NZ Debt Management Office has been so surprised at the unprecedentedly low interest rates that it can borrow at that it has already entirely pre-funded the 2013 fiscal deficit - all $8 billion of it! More >>

Pattrick Smellie Comment: Doddling along the best we can hope forCriticising Budgets for lacking vision or imagination is like shooting fish in a barrel, but even so, this year's Budget again feels like a missed opportunity. Perhaps it's the intrusion of real world needs that means the government couldn't make better political use of the $558.8 million it expects to gather in its first partial asset sale. More >>