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Friday, Jun 24, 2022

Ducommun to Sell Notes to Fund LaBarge Acquisition

Ducommun Inc. on Monday said it will sell $200 million in unsecured senior notes to help pay for its pending acquisition of electronics maker LaBarge Inc.

The Carson maker of aerospace parts said the notes will be sold after the closing of the $340 million acquisition, which Ducommun expects to happen following LaBarge stockholders’ special meeting on Wednesday.

Ducommun announced the deal in April, saying that acquisition of the LaDue, Mo. company would nearly double its revenue base and bring access to new customers and markets. LaBarge, which makes electronic circuit boards, cables and other components, had revenue of $324 million last year. Its largest customers include Boeing, Raytheon and General Electric.

The notes, which would be due in 2018, will be sold to institutional buyers, the company said.

Shares closed down 10 cents, or less than 1 percent, to $19.46 on the New York Stock Exchange.

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