Columbus, OH -Quality Products, Inc., a manufacturer and distributor of aircraft ground support equipment and hydraulic press machine tools, today announced an acquisition, through a newly formed subsidiary, PPT Industrial Machines Inc..
Under the terms of the purchase agreement, PPT is acquiring certain assets and liabilities of Pacific Press Technologies LLC, a manufacturer and servicer of press brakes, hydraulic presses, and shears for industrial metal forming applications, located in Mt. Carmel, Illinois. The purchase price is $2,825,789, consisting of $2,225,789 in cash and $600,000 in a 36-month unsecured subordinated promissory note. The cash portion of the transaction was funded through a new $2.5 million, 36-month term loan and $325,789 cash. Additionally, PPT assumes the existing building lease for the Mt. Carmel, Illinois facility where the business operates. The lease expires October 31, 2027.
Commenting on the transaction, Richard Drexler, CEO of Quality Products Inc., stated, “This acquisition expands the breadth of our product line and gives us the opportunity for increased sales distribution and market penetration.”
We do not provide financial estimates for future periods.