Ladish Co. Inc., the parent company of Ladish Forging and several other operating subsidiaries will acquire Chen-Tech Industries for $59 million. The deal will be structured as a merger, with Chen-Tech shareholders due to be paid in cash and Ladish common stock.
The final terms of the merger have not been reported, but Ladish indicates it expects to close it in the third quarter of 2008.
Both companies have a heavy concentration of customers that produce aircraft and aerospace engines. Ladish president and CEO Kerry L. Woody explained that Chen-Tech is “a highly regarded manufacturer of jet-engine forgings for mutual customers, such as General Electric. Chen-Tech's expertise in forging nickel-based and titanium components for smaller jet engines serving single aisle, regional, and business aircraft is a great complement to Ladish's expertise in forging larger engine components."
He added that by “combining Chen-Tech's strengths with Ladish's material technology and global market position we have laid a foundation to capitalize on long-term growth opportunities. The merger provides Ladish with a broadened product offering and increased market share on mutual aerospace programs.”
Chen-Tech, established in 1981, produces near-net forgings in titanium, nickel, and iron-based super alloys. Its plant in Irvine, CA, features three hydraulic presses (1,500-ton, 6,000-ton, and 15,000-ton), heat-treating equipment, a die shop, a machine shop with lathes and CNC machines, and ultrasonic testing equipment.
Ladish operates Ladish Forging in Cudahy, WI, and ZKM Forging in Stalowa Wola, Poland. It also include Diecast Tooling in Racine, WI; Stowe Machining Inc. in Windsor, CT, Valley Machining in LaCrosse, WI; and Pacific Cast Technologies, a diecaster in Albany, OR.
Woody said Chen-Tech will continue to be managed by Shannon Ko and his team. Ko has been in charge of the operation for over 15 years, according to Woody, who added he has “Shannon Ko for over 15 years," said Woody. "Under his direction, the company has demonstrated an impressive level of cost and technology leadership.”