Precision Aerotech to Buy Firm Making Mine-Arming Devices
Precision Aerotech Inc. of La Jolla has signed an agreement to pay an undisclosed sum of stock and cash for Brea-based Micronics International Inc., a closely held manufacturer of arming devices for tactical missiles and mines.
Micronics International employs about 100 at its plant in Brea and posted revenue of $8.6 million for the fiscal year ending March 29, up from $4.9 million the previous year, PAI senior vice president Wayne Suerth said Friday. Key MII managers will stay at their jobs after the merger, he said.
PAI, a manufacturer of metal components and assemblies for the aerospace industry, employs 400 people, only five of whom are based at the company’s headquarters offices in La Jolla. PAI’s operations are in Rancho Dominguez and Wichita, Kan. PAI posted revenues of $33.4 million for the fiscal year ending April 30, up from $27.4 million in fiscal 1986.
MII Vice President Loren Russakov said the merger is a good move because both companies are predominantly defense contractors.
MII’s arming devices are used in guided missiles, including the Sidewinder, Sparrow and Phoenix, Russakov said. MII is also developing an arming mechanism for a device to be used by the Marines and Army to clear mine fields.
“Precision Aerotech will provide the financial ability and stability we need for growth,” Russakov said.
MII shareholders are Russakov, President Walter Neubauer and Vice President Walter Smith. The merger is subject to approval by PAI’s board of directors.
PAI was formed in May 1986 from three companies owned by common investors. It went public in November, 1986.
