MOOG Completes purchase of FCS Control Systems(August 15, 2005) -- Moog Inc. (NYSE: MOG.A and MOG.B) announced today that it has closed on its acquisition of FCS Control Systems. FCS is a designer and manufacturer of high-fidelity electromechanical and electrohydraulic flight and vehicle simulation equipment, and structural test systems that are supplied to the aerospace and automotive markets.
FCS had annual sales of $24 million in 2004 and currently employs approximately 100 people. Its primary location is in Amsterdam, Holland. FCS traces its origins to 27 years ago when a small group of engineers working for Fokker Aircraft developed a technology for control loading systems used in flight training simulators. These systems allowed trainees to move a control stick and pedals and to have the same feel as if they were actually flying an airplane.
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Moog used existing cash balances and a revolving credit facility to make the purchase in the amount of 37 million euros, net of cash acquired. The newly acquired business will be reported as part of the company’s Industrial segment and is expected to contribute nearly $4 million in revenues to the fourth quarter of FY’05, which will finish at the end of September. In fiscal ’06, FCS is expected to generate approximately $36 million of the $1.2 billion in total sales forecasted for fiscal ‘06. The acquisition is expected to be slightly accretive to earnings within its first year despite purchase accounting rules, including those for the amortization of intangible assets, and expenses related to inventory and fixed assets.
FCS’s current sales are generated from flight simulation and driver training markets, primarily in Europe and the U.S., and by test equipment designed for the aerospace industry, also primarily in Europe. These two product lines are expected to directly complement Moog’s simulation and test products which are sold mostly into North American markets. In addition, the acquisition supports the company’s offset needs for defense control products delivered to the Dutch Army.
Moog Inc. is a worldwide designer, manufacturer, and integrator of precision control components and systems. Moog’s high-performance systems control military and commercial aircraft, satellites and space vehicles, launch vehicles, missiles, automated industrial machinery, and medical equipment.
Source : Moog Inc.