UNITED CAPITAL ANNOUNCES COMPLETION OF ACQUISITION OF CHU ASSOCIATES OF LITTLETON, MASS.
UNITED CAPITAL ANNOUNCES COMPLETION OF ACQUISITION OF CHU ASSOCIATES OF LITTLETON, MASS. NEW YORK, May 11 /PRNewswire/ -- United Capital Corp. (AMEX: ICU) announced today that it completed its acquisition of Chu Associates, Inc., and affiliated companies. The acquisition price of $4.3 million was satisfied by approximately $2.5 million in cash and approximately $1.8 million in seller financing. Chu Associates, Inc., and affiliated companies generated approximately $13 million in revenues during 1991. Chu Associates, Inc., located in Littleton, Mass., is a recognized leader in the design, development and manufacture of antenna systems. This acquisition will complement United Capital's Dorne & Margolin, Inc., subsidiary, also a developer and manufacturer of communication and navigation systems. Both companies occupy their own special niche in the marketplace and seldom compete with each other. The contemplated synergism between the two companies will enhance their technical capability in research and development, as well as in manufacturing technology, strengthen their competitive position and allow the companies to complement each other in all levels of operations. This acquisition adds to United Capital's market share and revenues and is expected to have an immediate positive impact on earnings. The combination of Chu Associates, Inc., and Dorne & Margolin, Inc., will create one of the strongest and most technically capable antenna systems houses in the world. United Capital Corp. owns and manages real estate assets and through its subsidiary, Metex Corporation, provides engineered products to aviation, industrial and automotive markets worldwide. United Capital reported revenues of $62,857,000 and net income of $3,481,000 for the year ended Dec. 31, 1991, and recently reported first quarter results of $15,709,000 in revenues and $1,015,000 in net income. -0- 5/11/92 /CONTACT: Dennis S. Rosatelli, chief financial officer of United Capital, 212-371-1781/ (ICU) CO: United Capital Corp.; Chu Associates, Inc. ST: New York, Massachusetts IN: SU: TNM
GK-SB -- NY026 -- 8486 05/11/92 09:52 EDT
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|Date:||May 11, 1992|
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