Valentec International to Sell Costa Mesa Plant

Valentec International Corp. said Monday it has signed a preliminary agreement to sell its four remaining manufacturing units, including its Wells Division military ordnance plant in Costa Mesa.

Valentec said it plans to sell the units to CPI Aerostructures Inc. of Ronkokoma, N.Y, in a cash and stock deal. Details were not disclosed.

Valentec, the Costa Mesa holding company for a diversified group of manufacturing companies, said CPI wants to acquire its computer components and medical prostheses unit in Minnesota; a defense materials plant in Wales; the Wells munitions unit; and a related ammunition systems integrator based in Clearwater, Fla.

The four companies have about 275 employees, including 140 in Costa Mesa. Combined revenue is expected to top $40 million next year.

CPI is not expected to lay off any of the workers or relocate any of the factories, said Kathie Krumwiede, Valentec’s controller.

Valentec originally owned six companies but took the two other units public in May, forming a new business called Safety Components International. Valentec is 48% owner of Safety Components, an automotive air bag manufacturer that has about 50 employees in Orange County and more that 500 at plants in Mexico and Great Britain.