Firan Technology Group Corporation Completes Acquisition of Substantially all of the Assets of Filtran Microcircuits Inc.

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[{"type":"text","content":"\n\n\n\nTORONTO, Dec. 31 /CNW/ - Firan Technology Group Corporation (TSX: FTG)\nannounced today that it has acquired substantially all of the assets from\nFiltran Microcircuits Inc. ("Filtran"), a Canadian printed circuit board\nmanufacturer based in Ottawa, Ontario and focused primarily on the manufacture\nof microwave printed circuit boards for high frequency applications. Filtran\nhad annual revenues of approximately $4,000,000 in 2007.\n\n\nThe transaction was effected pursuant to an asset purchase agreement\nentered into between FTG, Filtran and Filtran's parent company, Merrimac\nIndustries Inc. ("Merrimac") (AMEX: MRM). The total consideration payable by\nFTG is $1.45 million plus the assumption of liabilities valued at\napproximately $360,000. FTG paid $800,000 of the purchase price at closing\nwith the balance payable near the conclusion of an eight-week transitional\nperiod. FTG is financing the acquisition from existing cash and its bank\noperating line.\n\n\nThe purchase of Filtran's assets has significant strategic benefit to FTG\nas it is expected that the acquisition will accelerate its penetration of very\nhigh frequency circuit board applications. This market segment's use of high\ntechnology materials and special processing requirements limit competition and\nis a growing segment including many aerospace and defense applications. Under\nthe terms of the acquisition, FTG has acquired advanced and unique processing\nequipment, process know-how, all of Filtran's customer contracts as well as\nthe working capital of Filtran. Also as part of the acquisition, FTG has\nentered into a separate agreement with Merrimac, to provide printed circuit\nboards for Merrimac's internal needs including a specific military program.\n\n\n"We are excited about this deal as it enables FTG to continue its\nstrategy of consolidating printed circuit board manufacturers into a larger,\nmore capable company that can compete on a world scale", commented Brad\nBourne, President and Chief Executive Officer of FTG. He added, "Canadian\nmanufacturers, including FTG, have been hard hit by the continued\nyear-over-year appreciation of the Canadian dollar and strong commodity\nprices. Building larger scale, particularly in specialized technologies, is a\ncritical strategy in attempting to overcome these external...

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