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LMI Aerospace to Acquire Valent Aerostructures

Manufacturing Group | December 7, 2012

Deal Worth Approximately $237M, Plus Approximately $9.7M of Retained Obligations

Officials at LMI Aerospace Inc., a leading supplier of structural assemblies, kits, and components, and provider of design engineering services to the aerospace and defense industries, announce that the company has agreed to acquire Valent Aerostructures LLC for approximately $237 million, plus approximately $9.7 million of certain retained obligations.

Assuming the transaction closes in 2012, LMI is expected to generate over $480 million of revenues based on projected 2013 results of the combined entities. The increased scale, complementary product offerings, and enhanced project management capabilities of the consolidated company are expected to drive further growth from existing platforms as well as launch differentiated solutions for key aerospace platforms.

The combined companies are expected to deliver significant benefits to customers, employees, and shareholders through more diversified product and services offerings, deeper customer relationships and greater leverage of its extensive manufacturing and supply chain network.

"The acquisition of Valent is transformational for LMI and represents a major step in fulfilling LMI's strategic objectives," says Ronald S. Saks, CEO, LMI. "Valent provides additional capabilities, which should position LMI for long-term growth and success in what we believe will be a robust aerospace cycle."

In connection with the acquisition, LMI plans to change its organizational strategy by placing greater responsibility and leadership in the Aerostructures segment. Charlie and Henry Newell, Valent's current co-Chief Executive Officers, will assume the newly created positions of Co-Presidents of the LMI Aerostructures Segment.
The senior leadership team of the combined business will be located in both St. Charles and Kansas City.

The transaction, unanimously approved by LMI's Board of Directors, is subject to various closing conditions, including regulatory approvals, and is expected to be completed by December 31, 2012.

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