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Wired News – CPI Aero Acquired Welding Metallurgy from Air Industries Group

LONDON, UK / ACCESSWIRE / March 26, 2018 / Active-Investors.com has just released a free research report on CPI Aerostructures, Inc. (NYSE: CVU) ("CPI Aero"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CVU as the Company's latest news hit the wire. On March 22, 2018, the Company announced that it has signed a deal to purchase Welding Metallurgy, Inc. ("WMI") from Air Industries Group, Inc. (NYSE American: AIRI), an integrated manufacturer of precision equipment assemblies and components for leading aerospace and defense prime contractors, for approximately $9.0 million in cash. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, CPI Aerostructures and Air Industries Group most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Deal Details

  • The transaction is subject to a customary adjustment based on WMI's net working capital at the closing of the acquisition. CPI Aero will also pay an aggregate of $1.0 million in cash to Air Industries, if WMI enters into certain long-term supply agreements during 2018.
  • CPI Aero will fund the transaction through a new term loan to be included within an expanded and extended credit facility to be negotiated with the Company's existing lender. The transaction is expected to be accretive to 2018 earnings per share.
  • The agreement, likely to close during Q2 2018, is subject to customary closing conditions and the Company obtaining financing.
  • Canaccord Genuity served as exclusive financial advisor and Graubard Miller served as legal counsel to CPI Aero.

Strategic Benefits of the Deal

The acquisition of WMI will add capabilities to CPI Aero's Aerostructures and Aerosystems businesses that support a larger defense portfolio and broaden the content footprint on shared defense programs. WMI will augment the Company's Aerostructures business with complementary customers and programs including the E-2D Advanced Hawkeye, F-35, UH-60 Blackhawk and Sikorsky CH-53K, thereby increasing CPI Aero's content on these key defense programs. WMI will also broaden CPI Aero's technical capabilities in the areas of specialty welding and large diameter tube bending and diversify the Company's Aerosystems business to include electronics integration and wire harness solutions.

Post-Closing, WMI is Expected to Contribute More than $15 Million in Annual Revenue

Douglas McCrosson, President and CEO of CPI Aero, mentioned that leveraging the cost management and operational improvements implemented in prior years, the Company now has an efficient infrastructure to seamlessly absorb WMI's production operation into its facility during 2018, and to realize significant post-acquisition cost synergies. In addition, post-closing, CPI Aero anticipates that WMI will contribute more than $15 million in annual revenue and enhance the Company's profitability. Douglas added that by combining WMI's unique production capabilities with CPI Aero's reputation for manufacturing quality, highly complex structures and systems, the Company will continue to deliver superior value to our shared customers.

About Welding Metallurgy, Inc.

WMI, a subsidiary of Air Industries Group, Inc., provides specialty welded products and assemblies, large diameter tube bending and integrated electronic assemblies, among other capabilities, to defense and aerospace markets. WMI's defense customers include Sikorsky, Lockheed Martin, Northrop Grumman, Kaman Aerospace, Raytheon, and GKN Aerospace, among others.

About CPI Aerostructures, Inc.

Founded in 1980 and headquartered in Edgewood, New York, CPI Aero is a US manufacturer of structural assemblies and value-added kits for fixed wing and rotary wing aircraft in both the commercial aerospace and defense markets. The Company also manufactures pod-based, airborne avionics systems for Intelligence Surveillance and Reconnaissance (ISR), Electronic Warfare (EW), and Radar end-markets.

Stock Performance Snapshot

March 23, 2018 - At Friday's closing bell, CPI Aerostructures' stock climbed 8.67%, ending the trading session at $9.40.

Volume traded for the day: 71.06 thousand shares, which was above the 3-month average volume of 26.45 thousand shares.

Stock performance in the last month – up 9.94%; previous three-month period – up 4.66%; past twelve-month period – up 41.35%; and year-to-date - up 5.03%

After last Friday's close, CPI Aerostructures' market cap was at $83.31 million.

Price to Earnings (P/E) ratio was at 14.18.

The stock is part of the Industrial Goods sector, categorized under the Aerospace/Defense Products & Services industry.

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