Techprecision Signs Definitive Agreement to Acquire Votaw Precision Technologies For A Purchase Price Of $85M On A Cash And Debt Free Basis
Portfolio Pulse from Benzinga Newsdesk
TechPrecision Corporation (NASDAQ:TPCS) has signed a definitive agreement to acquire Votaw Precision Technologies for $85M on a cash and debt-free basis. The acquisition is expected to more than double TechPrecision's revenue and EBITDA and enhance its strategic capabilities in the defense and aerospace industries. The deal includes a $70M payment at closing, semi-annual payments totaling $15M, and an earnout of up to $25M based on Votaw's FY2024 EBITDA. The acquisition is anticipated to be completed between December 15, 2023, and March 31, 2024, with TechPrecision having 45 days to conduct due diligence.
November 29, 2023 | 9:13 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
TechPrecision's acquisition of Votaw is set to significantly increase its revenue and EBITDA, expand its defense and aerospace operations, and potentially save millions in overhead and CAPEX by consolidating facilities.
The acquisition of Votaw is directly related to TechPrecision and is a significant strategic move that is expected to more than double the company's financial metrics and enhance its market position. The positive impact on revenue and EBITDA, along with strategic benefits in the defense and aerospace sectors, suggest a likely increase in the stock price in the short term. The confidence level is not at 100 due to the fact that the deal's completion is subject to customary closing conditions and the ongoing due diligence process.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100