Perceptronics Discusses Selling Part of Business to Ford Aerospace

Perceptronics has held talks with Ford Aerospace about Ford buying a portion of the Woodland Hills company.

“We are interested in forming strategic relationships,” said Gershon Weltman, chairman of Perceptronics. “We have been in contact with Ford Aerospace.”

Susan Pearce, a spokeswoman for Ford Aerospace, refused comment. “As a matter of Ford policy, we do not discuss in any way questions about acquisitions,” she said.

Perceptronics makes simulators used by troops operating tanks, armored vehicles and helicopters. The company’s biggest customer is the Army.

A source at Perceptronics said the company is looking for a partner to give it more clout in the highly competitive defense industry.

Perceptronics’ stock closed Monday at $4.75 per share, down 62.5 cents. The stock had been climbing steadily from $3.25 in late April.

For the nine months that ended Dec. 31, Perceptronics earned $1.38 million, or 38 cents a share, compared to $893,000, or 24 cents a share, a year earlier. Revenue climbed 63% to $41 million.

Budget cuts in the military have sparked new interest in using simulators. Rather than using tanks or helicopters to train troops, the armed forces are increasingly using simulators because they cost less.

General Motors’ Hughes Electronics Corp. in May acquired Rediffusion Simulation of Arlington, Tex., for $283 million. And British Aerospace has acquired a majority stake in Reflectone, a Tampa, Fla.-based simulator company.

Earlier this month, a group of investors headed by Richard Nager, a New York investment banker, who own 5% of Perceptronics, filed a statement with the Securities and Exchange Commission saying that for six months he had been talking with Perceptronics’ management about a possible leveraged buyout, or acquisition of the company.

Nager, who works for Ladenburg, Thalmann & Co., has been an investor in Perceptronics for several years. According to the SEC filing, Nager also wanted to discuss getting representation on Perceptronics’ board of directors.

Nager could not be reached for comment.

“I don’t think this is being done on an unfriendly basis,” Weltman said. “We’re certainly in favor of enhancing shareholders’ values.” Weltman said Perceptronics would consider an offer from Nager if one were made.

The SEC filing said Nager’s group reserves the right to launch a takeover bid, but it has no plans at present to do so. On June 10, the day of Nager’s announcement, about 129,500 shares of Perceptronics were traded, compared to an average daily volume of 34,000.