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.