TORONTO, Nov. 17, 2022 (GLOBE NEWSWIRE) — Firan Technology Group Corporation (TSX:FTG), announced it has entered into an agreement to acquire IMI, Inc. (“IMI”) based in Haverhill, Massachusetts, north of Boston. IMI is a manufacturer of specialty RF circuit boards focused on the aerospace and defense markets. The closing of the acquisition is subject to approval by the Committee on Foreign Investment in the United States (CFIUS) and other customary closing conditions. The companies will shortly apply for CFIUS approval. The closing of the transaction is expected to take place in the first quarter of fiscal 2023.
FTG will acquire 100% of the common shares of IMI for cash consideration of approximately $2M CAD, subject to typical closing adjustments. The target company has had reported annual sales of approximately $4-5M CAD in its unaudited financial statements over the past few years.
“FTG had identified a desire to increase its product offering of RF Circuit Boards for aerospace and defense applications. This acquisition, if completed, will complement FTG’s existing facilities, add new customers and provide a broader product offering to our existing customer base”, stated Brad Bourne, President and CEO, FTG Corporation. He added, “Peter Bigelow has done an excellent job building IMI’s RF capability through investments in people, processes and technology and FTG plans to grow IMI from its current location.”
Peter Bigelow commented, “I am pleased with the sale of IMI to FTG, as I believe FTG will continue to build the business going forward to the benefit of IMI’s customers, employees and other stakeholders. While the ownership of the company is changing, I have agreed to remain with IMI as President for a period of time after the closing of the sale to FTG.”
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
FTG is an aerospace and defense electronics product and subsystem supplier to customers around the globe. FTG has two operating units:
FTG Circuits is a manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation, defense, and high technology industries. FTG Circuits has operations in Toronto, Ontario, Chatsworth, California, Fredericksburg, Virginia and a joint venture in Tianjin, China.
FTG Aerospace manufactures and repairs illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of aerospace and defense equipment. FTG Aerospace has operations in Toronto, Ontario, Chatsworth, California and Tianjin, China.
The Corporation’s shares are traded on the Toronto Stock Exchange under the symbol FTG.
This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG’s operations, anticipated financial performance, business prospects and strategies, the expected closing of the acquisition, the CFIUS application and approval, the source of funds for the acquisition price and the benefits of the acquisition for FTG. Forward-looking information typically contains words such as “anticipate”, “believe”, “expect”, “plan” or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation’s industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
For further information please contact:
Bradley C. Bourne, President and CEO
Tel: (416) 299-4000, ext. 314
Firan Technology Group Corporation
Jamie Crichton, Vice President and CFO
Tel: (416) 299-4000, ext. 264
Firan Technology Group Corporation
Additional information can be found at the Corporation’s website www.ftgcorp.com