Cudahy-based Ladish Co. announced it has entered into an agreement to acquire Chen-Tech Industries Inc. of Irvine, Calif., for approximately $59 million in cash and stock.
The transaction is expected to close in the third quarter of 2008.
Kerry Woody, president and chief executive officer of Ladish, said, "Chen-Tech, with projected 2008 sales of about $50 million, is a highly regarded manufacturer of jet engine forgings for mutual customers such as General Electric. Chen-Tech's expertise in forging nickel-based and titanium components for smaller jet engines serving single aisle, regional, and business aircraft is a great complement to Ladish's expertise in forging larger engine components."
Chen-Tech has been led by Shannon Ko for more than 15 years. Ko and his team will continue to manage Chen-Tech after the acquisition, Woody said.
"By combining Chen-Tech's strengths with Ladish's material technology and global market position, we have laid a foundation to capitalize on long-term growth opportunities. The merger provides Ladish with a broadened product offering and increased market share on mutual aerospace programs. Working together, we believe synergistic savings will further enhance long-term profitability," Woody said.
Ladish manufactures highly engineered, technically advanced components for the jet engine, aerospace and general industrial markets.
Ladish to acquire California firm
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