Firearms Training Systems sold for $144M
Meggitt-USA Inc. is pulling the trigger on a deal to acquire Firearms Training Systems Inc. for $144 million.
The boards of directors of both companies have approved the transaction, which is expected to be completed in the fourth quarter.
"A strategic merger with Meggitt significantly advances our continued strategy of expanding our worldwide customer base, leveraging our strategic partnerships, and otherwise growing beyond our historical roots as a small arms training company to lead the industry in virtual training solutions," said Ronavan Mohling, president and CEO of Firearms Training Systems. "Combining Meggitt's strong development and commercialization capabilities in the aerospace and defense industries with FATS' cutting edge technology in the virtual training solutions market, creates an excellent opportunity to leverage the significant strengths of both companies."
Mark Thierfelder and Paul Scrivano of O'Melveny & Myers LLP and Walter Jospin and Karen Leach of Paul, Hastings, Janofsky & Walker LLP served as counsel for Firearms Training Systems, while Houlihan Lokey Howard & Zukin Financial Advisors Inc. served as its financial advisor.
Suwanee, Ga.-based Firearms Training Systems (OTCBB: FATS) designs and sells virtual training systems that improve the skills of the world's military, law enforcement and security forces. It recently reported its first-quarter 2007 profit increased more than 230 percent to $30,000 on $16.9 million in revenue.
Simi Valley, Calif-based Meggitt-USA is a subsidiary of UK defense contractor Meggitt PLC (Pink Sheets: MEGGF). It had $120.9 million in revenue in 2005.
Published August 24, 2006 by the Atlanta Business Chronicle
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