Create a free Manufacturing.net account to continue

Ducommun To Buy LaBarge

Aerospace engineering firm said it will buy all of the outstanding stock of electronic manufacturing services company LaBarge Inc. for $340 million.

CARSON, Calif. (AP) -- Ducommun Inc. will buy all of the outstanding stock of electronic manufacturing services company LaBarge Inc. $340 million, the aerospace engineering firm said Monday.

Ducommun will spend $19.25 per share and pick up all of LaBarge's debt, which was $30 million as of Jan. 2.

LaBarge shareholders still must vote on the deal, and it is subject to regulatory approvals as well.

Carson, Calif.-based Ducommun said the acquisition will nearly double its revenue and bring access to new customers and markets. LaBarge had revenue of $324 million for its fiscal year that ended Jan. 2.

Ducommun said the St. Louis-based LaBarge will be combined with its Ducommun Technologies (DTI) subsidiary and renamed Ducommun LaBarge Technologies. It will be run by LaBarge Chief Operation Officer Randy Buschling.

Ducommun Inc. said it has received financing or the deal from UBS Investment Bank and Credit Suisse.

Shares of LaBarge rose $1.66, or 9.5 percent, to $19.09 in premarket trading Monday. Ducommun shares closed Friday at $24.06, up 16 cents from Thursday's close.