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02/2016

SPECTRUM CONTROL acquired by J F LEHMAN

UNITED STATES Aerospace, Naval & Defense / Electronics EV 300M - 700M USD

Context

US private equity firm J. F. Lehman, which focuses on the aerospace, maritime and defense sectors, has agreed to buy API Technologies, a US supplier of RF, microwave, millimeterwave, power and security solutions, through a newly created affiliate. That vehicle will take over all of the company's outstanding common stock in a merger. The definitive agreement, announced by API, is expected to be completed in the second fiscal quarter of 2016. JFLCO, as J. F. Lehman is known, is buying the business from its existing stockholders. Robert Tavares, API's President and Chief Executive Officer, said the transaction shows backing for the strategies and tactics his leadership team has introduced over the preceding twelve months. He added that the company will gain, under its new owner, the liquidity and capital structure required to carry out its business improvement and growth plans. API's board approved the agreement unanimously, and holders of a majority of its outstanding shares gave their consent in writing. Completion depends on the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expiring or being terminated early. Jefferies is advising API on the financial side, while Wilson Sonsini Goodrich & Rosati, Professional Corporation, is providing legal counsel to the company.

SPECTRUM CONTROL, which reported an EBITDA margin of in 2015, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the Industry & Manufacturing sector (11.5x).

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Target

Spectrum Control designs and manufactures radio frequency, microwave, microelectronic, electromagnetic and power management components and systems that control the electromagnetic spectrum in defence and government programmes. Built to operate in harsh environments, its products are developed with customer engineering teams from concept and prototype through to production and testing, and the company keeps design, sourcing and manufacturing in-house. Founded in 1963, it is based in Fairview, Pennsylvania, and also operates in the United Kingdom.

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Other operations with SPECTRUM CONTROL

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
09/2026GREENBRIAR EQUITY GROUPSPECTRUM CONTROLUNITED STATESElectronics
05/2019AEA INVESTORSSPECTRUM CONTROLUNITED STATESElectronics

REFERENCES

Valuation range: EV 300M - 700M USD

Revenue range: 150M - 250M USD

EBITDA range: 10M - 30M USD

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Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Target: spectrum control

Acquirer: j f lehman