Circuit World Corporation Signs Letter of Intent to Sell Assets of Aerospace Division
Circuit World Corporation (TSX: CCW) announced today that it has signed a non-binding Letter of Intent (LOI) to sell the assets of its aerospace division, FTG Aerospace, to Astronics Corporation (Nasdaq: ATRO).
“With more than 85% of revenues being derived from our core circuit board business and the significant improvement in this market over the last 6 months, we made the strategic decision to focus our resources on our best opportunity to create long-term shareholder value – the supply of advanced, high technology printed circuit boards to the aerospace and defence industries,” said Brad Bourne, President and CEO of Circuit World. “We believe the sale of the Aerospace business will enable the dedicated and talented people in the division to continue to excel as they will become part of a leading company in this market”.
Terms of the proposed all cash acquisition were not disclosed. The closing of the proposed sale is subject to a number of conditions including satisfactory due diligence by Astronics. It is expected that the closing will occur in the second quarter of this fiscal year.
It is anticipated that the proceeds from the sale will be reinvested in the core circuit board business to facilitate further growth.
FTG Aerospace manufactures illuminated cockpit panels, keyboards and bezels for original equipment manufacturers of avionics products, as well as for airframe manufacturers. Revenue for the fiscal year ended November 30, 2003 was CAN$7.5 million. The division has approximately 60 employees.
ABOUT CIRCUIT WORLD CORPORATION
Circuit World Corporation is a leading supplier of high reliability printed circuit boards. The company manufactures its products through its operating division FTG Circuits.
The Company’s shares are traded on the Toronto Stock Exchange under the symbol CCW.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of Circuit World with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
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