Ducommun Inc. announced that it has agreed to sell Miltec Corporation to San Diego-based General Atomics for a purchase price of $14.6 million in cash. Acquired by Ducommun in 2006 for $50 million and based in Huntsville, Alabama, Miltec provides engineering, technical and program management services to the DoD and Intel agencies. The business generated 2015 revenue of $28.2 million.
This was a bit of a surprising deal since General Atomics isn't exactly known as an acquirer in recent years, with most of its acquisitions occurring during the 1990's. However, they must have seen Miltec as a good opportunity to get complimentary capabilities at a good valuation (half times 2015 revenue). The GA press release states that Miltec will become part of GA's Electromagnetic Systems (EMS) group and will "accelerate GA's depth of knowledge in key technical areas of hypersonic vehicles, small satellites and related products and programs."
KippsDeSanto is the financial advisor to Ducommun on the transaction.
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