Loar Holdings Inc. Announces Acquisition of Applied Avionics, Inc.

WHITE PLAINS, NY / ACCESSWIRE / July 19, 2024 / Loar Holdings Inc (NYSE: LOAR) has announced a definitive agreement to acquire Applied Avionics, Inc. for $385 million in cash. Incorporated in 1968, Applied Avionics specializes in avionics interface solutions. Its brands, VIVISUN® and NEXSYS®, serve significant players in both commercial and military aerospace markets.

The acquisition is anticipated to be beneficial to Loar, contributing an estimated $40 million in sales and $21 million in adjusted EBITDA for 2024. Loar expects tax benefits of approximately $45 million from this transaction, translating to an effective purchase price multiple of around 16x Applied Avionics' 2024 adjusted EBITDA.

Dirkson Charles, CEO of Loar, emphasized that the acquisition aligns with Loar's strategic focus on niche capabilities and proprietary products, reinforcing their aftermarket strength. The transaction is expected to close soon, pending regulatory approvals and other customary conditions. It will be financed through Loar's existing credit agreement and cash reserves.