Air Industries Group announced that it acquired 100% of the stock and the business of Woodbine Products, Inc. of Deer Park, Long Island, NY (Woodbine).
Woodbine is a long established Long Island based manufacturer of aerospace components whose customers include major aircraft component suppliers. Woodbine specializes in welded and brazed chassis structures housing electronics in aircraft. Woodbine's products and customers are very complementary to those of Decimal Industries which Air Industries acquired in July 2013. Woodbine will become part of Air Industries' subsidiary, Welding Metallurgy, Inc. (WMI).
The two principals of Woodbine will assist Air Industries in the transition and its factory in Deer Park has been leased until December 2014 at which time operations will be transferred to WMI's facility in Hauppauge NY.
Separately, Air Industries announced that it has reached agreements in principle to acquire two other companies. One acquisition candidate is a fabricator of sheet metal components using drop hammer and hydro-forming machinery located in the Southwestern United States. This company is currently a supplier of components to WMI. Its other customers include major aerospace companies, some of which already do business with members of Air Industries. The other acquisition target, located in New England, is a logistics company which aggregates products and assembles kits of equipment for the U.S. Military and Government.
Mr. Peter Rettaliata, Chief Executive Officer of Air Industries, commented: "The acquisition of Woodbine Products with its sterling reputation for quality and performance further enhances our subsidiary, Welding Metallurgy. Woodbine's products are similar to those of Decimal Industries and this acquisition expands our product line. There is some customer overlap, deepening our presence with these customers and some new customers with whom we can expand our business.
"This acquisition and the two others on which we have reached tentative agreements reflect our strategy of growth through acquisition; capitalizing on the increased pressure to consolidate to respond to the reality of reduced military spending.
"If we are successful in completing these two additional acquisitions and there can be no assurance that we will be successful, our projected pro forma EBITDA for 2014 should be approximately $ 10 million."