TAT Technologies Ltd., a leading provider of services and products for the commercial and military aerospace and ground defense industries, today announced that it has completed the acquisition of Chromalloy Israel for approximately US $3.5 million. In addition, TAT will pay an earn-out, capped at $2 million, in the event that Chromalloy Israel meets certain annual revenue targets in 2015 and 2016.
TAT shall include Chromalloy Israel's financial results in its consolidated financial statements from the date of closing.
Following the completion of the transaction, Chromalloy Israel shall change its name to Turbochrome Ltd.
Chromalloy Israel, located in Kiryat Gat, Israel, specializes in overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes, afterburner flaps and other components. Chromalloy Israel, an FAA and an EASA approved repair station, is ISO 9001 and AS9100 certified and has been approved by major OEMs to perform unique coatings with specific substances.
Mr. Itsik Maaravi, TAT's President and CEO, said "We are pleased with the acquisition of Chromalloy Israel. It enables us to expand our capabilities and increase the line of products and services we offer our customers. Chromalloy Israel's unique capabilities allow us to expand into new segments and provide our customers with more comprehensive solutions. Chromalloy Israel operates in a large growing market that requires highly specialized know-how and approvals of regulatory authorities worldwide. Chromalloy Israel has the required approvals, know-how, experience and customer-base to enable its continuous growth in this market. TAT's financial stability, reflected by its strong balance sheet and free cash available for new investments, enables the company to acquire and invest in activities that would contribute to the company's capabilities and its positioning in the aviation market."