Air Industries Group, Inc. Announces Acquisition
Air Industries Group, Inc. (NYSE: AIRI) (Air Industries or the Company) announced today that it has acquired certain assets and the business of Decimal Industries (Decimal) of Copiague, Long Island, New York.
Decimal is a long established Long Island based manufacturer of aerospace components whose customers include major aircraft component suppliers. Decimal specializes in aerostructure products including welded and brazed chassis structures housing electronics, radars, and avionics in aircraft. Decimal's business will become a division of the Company's Welding Metallurgy, Inc (WMI) subsidiary.
The two principals of Decimal will join Air Industries to aid in the transition. Decimal's current facility has been leased for one year. It is anticipated that the Decimal operations will be relocated to the Company's facility in Hauppauge, New York.
As part of the Decimal acquisition Air Industries also agreed with PNC Bank to restate and amend its loan agreement. This amendment reduces the interest charged by PNC on both the Revolving Credit Line and Term Loan.
Mr. Peter Rettaliata, Chief Executive Officer of Air Industries, commented: "The acquisition of Decimal Industries brings important strategic benefits to our Welding Metallurgy subsidiary. Since becoming part of Air Industries in 2007, WMI has evolved from a provider of welding services to a manufacturer of aircraft aerostructures, ground support equipment and complex tubing assemblies. The acquisition of Decimal brings new and complementary technical capabilities, new product lines and strategically important new customers to WMI.
"Revenue at WMI has increased 375% from approximately $4.0 in 2008 -- the first full year as part of Air Industries -- to nearly $15 million in 2012. We are hopeful that the acquisition of Decimal's business will further accelerate this growth."
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.