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TechPrecision Corporation Announces Definitive Agreement to Purchase Precision Parts Manufacturer STADCO
Immediately Doubles Revenue;Adds Strategic Capabilities in Defense and Aerospace Industry;Adds Tactical Capacity for GrowthWESTMINSTER, MA / ACCESSWIRE /
About this update from Techprecision Corporation
[{"type":"text","content":"Immediately Doubles Revenue;Adds Strategic Capabilities in Defense and Aerospace Industry;Adds Tactical Capacity for GrowthWESTMINSTER, MA / ACCESSWIRE / October 20, 2020 / TechPrecision Corporation (OTCQB:TPCS) (\"TechPrecision\" or \"the Company\"), today announced that it has entered into a definitive agreement to purchase STADCO, a privately-held company. The total purchase price consists of 1 million shares of TechPrecision common stock to purchase all the shares of STADCO common stock. TechPrecision and STADCO are also working, through negotiation with STADCO's creditors, to substantially reduce the approximately $14 million of STADCO liabilities that would otherwise be added to the consolidated balance of the combined company after closing. Reaching agreements with these creditors to the satisfaction of TechPrecision is required for the closing of the deal to occur. In this regard, the Company has had preliminary negotiations with all of these creditors and, other than STADCO's principal bank, the obligations to which are expected to be satisfied through a refinancing transaction, it is expected that a percentage of the other liabilities will be satisfied in part or full through the issuance of additional shares of the Company's common stock.With STADCO 2019 annual revenue of $16.4 million and a current backlog of approximately $17.1 million, the addition of STADCO will, upon closing, immediately double the size of the Company by revenue and provide an established defense and aerospace presence for TechPrecision. The acquisition, which is subject to closing conditions, is anticipated to close on December 1, 2020.Based in southern California, STADCO, founded in 1941, is a custom precision parts manufacturer that has served the defense, aerospace, and precision industrial industries as well as a range of commercial organizations with specialized manufacturing and tooling requirements. STADCO presently employs approximately 80 skilled personnel in technology engineering and manufacturing, with 180,000 square feet of operations in Los Angeles. STADCO is a leader in the business of custom manufacturing high-precision parts, assemblies and tooling, with a client list including blue-chip companies such as Sikorsky Aircraft, Lockheed Martin, Spirit AeroSystems, Boeing, and Raytheon. The acquisition coupled with the Ranor, Inc. op...