GWB TO ADD NEC TO LIST OF PURCHASES.
A 46-year-old aerospace components producer announced Friday it has agreed to be sold for $12.6 million in cash to a British investor group.
Networks Electronic Corp., which operates two plants in Chatsworth and has about 80 employees, has signed a definitive merger agreement with GWB (USA) Inc. The deal, which has been approved by the NEC board and should close in three months, calls for shareholders to receive $7.50 a share, a 25 percent premium to its most recent trading price of $6.
GWB said it anticipates no significant changes to the management or operations of NEC, which earned $1.14 million, or 68 cents a share, on sales of $6.07 million in the nine months ended March 31.
NEC said shareholders controlling 53 percent of the stock have endorsed the deal. The company began exploring a sale once a court determined that its largest shareholder, the Mihai Patrichi Trust, was required to sell its interest. Patrichi, who founded the company, died in 1994.
The company has two divisions - US Bearing, which manufactures precision bearings for military applications and aerospace hardware; and Ordnance, which produces precision pyrotechnic devices such as thermal relay switches, piston actuators and wire cutters. Its parts have been used on the Space Shuttle and the Space Station.
Atlanta-based GWB is a subsidiary of Gartland Whalley and Barker PLC and has bought three industrial components companies in New England - General Clutch Corp., Homer D. Bronson Co. and International Metal Products Corp.
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|Publication:||Daily News (Los Angeles, CA)|
|Date:||Jul 24, 1999|
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