Loar Holdings Inc. Completes Acquisition of Applied Avionics, Inc.

WHITE PLAINS, NY / ACCESSWIRE / August 26, 2024 / Loar Holdings Inc. (NYSE:LOAR) (“Loar,” “we” and “our”) today announced that it has completed its previously announced acquisition of Applied Avionics, Inc. (“Applied Avionics”) for approximately $385 million in cash.

Applied Avionics designs, develops and manufactures highly advanced interface solutions for avionics and other aerospace and defense electronics. Applied Avionics’ brands, VIVISUN® and NEXSYS®, are the preferred choices of leading aircraft retrofit providers, military prime contractors, Tier 1 suppliers and OEMs, among others, reflecting Applied Avionics’ passion for exceptional customer service, world-class quality and a reputation for innovative solutions. Applied Avionics maintains its headquarters and manufacturing operations at its facility in Fort Worth, Texas.

As previously announced, Loar expects Applied Avionics net sales and adjusted EBITDA for the year ending December 31, 2024 to be approximately $40 million and $21 million, respectively. Loar also expects a tax benefit of approximately $45 million as a result of the transaction. Following the completion of the acquisition, Loar forecasts a net debt-to-EBITDA ratio of less than 4.0x.

About Loar Holdings Inc.

Loar Holdings Inc. is a diversified manufacturer and supplier of niche aerospace and defense components that are essential to today’s aerospace and defense aircraft and systems. Loar has established relationships with leading aerospace and defense original equipment manufacturers and Tier Ones around the world.

Forecast statements

This press release contains express or implied forward-looking statements. Forward-looking statements include all statements that are not historical facts, including those that reflect our current views regarding, among other things, Loar’s ability to timely complete the acquisition of Applied Avionics, Loar’s ability to finance such acquisition and Applied Avionics’ expected financial results. The words “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,” “predictable,” the negative version of these words or similar terms and phrases may identify forward-looking statements in this press release, but the absence of these words does not mean that a statement is not forward-looking.

Actual results may differ materially from our expectations due to changes in global, regional or local economic, business, competitive, market, regulatory and other factors, many of which are beyond our control. We believe that these factors include, but are not limited to, the following: the almost exclusive focus of our business on the aerospace and defense industries; our heavy reliance on certain customers for a significant portion of our sales; the fact that we have made acquisitions in the past and our intention to continue making acquisitions and that our business could be adversely affected if we are unable to complete acquisitions on satisfactory terms or if we are unable to successfully integrate acquired operations; and other risks and uncertainties described in the “Risk Factors” section of Loar’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, filed with the Securities and Exchange Commission (the “SEC”) on August 13, 2024, and other periodic reports filed by Loar from time to time with the SEC.

These factors should not be construed as all-inclusive and should be read in conjunction with the other cautionary statements contained in this press release. Any forward-looking statements made by us in this press release speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements contained in this press release. We may not achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether because of new information, future events or otherwise, except as required by applicable law.

Contact

Ian McKillop
Loar Group Investor Relations
[email protected]

SOURCE: Loar Group Inc.

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