Firearms Training Systems Being Sold To Aerospace Firm In $144M Deal
Posted August 24, 2006 8:39 a.m. EDT
ATLANTA, Ga. — Firearms Training Systems
(FATS), a developer and manufacturer of sophisticated simulation training systems, is being sold.
The company based in Suwanee, Ga., said Thursday morning it is being acquired by aerospace firm Meggitt-USA in a deal worth $144 million. Meggitt will pay $1.08 per share. Media reports calculated the value of the deal at $86 million for stock plus the assumption of $58 million in debt.
FATS (OTCBB: FATS) shares closed at 80 cents on Wednesday. It has a 52-week high of $1.33 and a low of 68 cents.
"A strategic merger with Meggitt significantly advances our continued strategy of expanding our worldwide customer base, leveraging our strategic partnerships, and otherwise growing beyond our historical roots as a small arms training company to lead the industry in virtual training solutions," said Ronavan Mohling, FATS' chief executive officer.
The deal is expected to close in the fourth quarter.
FATS, which was founded in 1984, reported revenues of $78.5 million in fiscal year 2006.