Crawford United Corporation Acquires Global-Tek Manufacturing and Machining Technology

Rhea-AI Summary

Crawford United Corporation (OTC: CRAWA) announced the acquisition of Global-Tek Manufacturing in Puerto Rico and Machining Technology in Colorado, effective March 1, 2021. These companies specialize in providing engineered manufacturing solutions, including CNC machining and die casting, primarily in the defense, aerospace, and medical device sectors. The acquisition is expected to enhance Crawford's market presence and diversify its customer base, contributing an estimated $8 million in annualized revenue and being immediately accretive to earnings.

Positive

• Acquisition of Global-Tek and Machining Technology expected to add approximately $8 million in annualized revenue.
• Immediate accretive impact on earnings from the acquisitions.
• Expansion of offerings and diversification of customer base in the aerospace and defense markets.

Negative

• Potential challenges in integrating the acquired businesses.
• Risks related to achieving anticipated benefits from the acquisitions.

CLEVELAND, March 02, 2021 (GLOBE NEWSWIRE) -- Crawford United Corporation (OTC: CRAWA) today announced the purchase of Global-Tek Manufacturing in Ceiba, Puerto Rico and Machining Technology in Longmont, Colorado effective March 1, 2021.  The acquired businesses provide customers in the defense, aerospace, and medical device markets with highly engineered manufacturing solutions, including CNC machining, die casting, anodizing, electro polishing, and laser marking. 

“Global-Tek and Machining Technology are strategically important to our growing presence in the aerospace and defense markets,” said Brian Powers, CEO of Crawford United.  “These acquisitions will expand our offerings and diversify our customer base in this important market segment,” he added. 

The acquisitions are expected to add approximately $8 million in annualized revenue to Crawford United and be immediately accretive to earnings.

About Crawford United Corporation.  Crawford United Corporation is a growth-oriented holding company providing specialty industrial products to diverse markets, including healthcare, aerospace, education, transportation, and petrochemical. For more information, go to www.crawfordunited.com.

Information about Forward Looking Statements. This press release contains forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements made regarding the company’s future results. Generally, these statements can be identified by the use of words such as “guidance,” “outlook,” “believes,” “estimates,” “anticipates,” “expects,” “forecasts,” “seeks,” “projects,” “intends,” “plans,” “may,” “will,” “should,” “could,” “would” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results and events may differ significantly from those anticipated as a result of risks and uncertainties, including deterioration of or instability in the economy, the markets the Company serves and the financial markets, developments and uncertainties in U.S. laws and policy, decreased availability or increased costs of materials used in producing the Company’s products, contractions or growth rates and seasonality or  cyclicality of markets the Company serves, competition, loss of any key customer, the Company’s ability to successfully integrate the businesses it acquires and achieve the anticipated benefits of such acquisitions (including the anticipated addition of annualized revenue from the Global-Tek and Machining Technology acquisitions), the impact of divestitures and dispositions, the impact of the Company’s debt obligations on its operations and liquidity, as well as the risks described from time to time in the company’s reports as filed with the Securities and Exchange Commission. Further information on potential factors that could affect the financial results of the Company and its forward-looking statements is included in its most recent Form 10-K and subsequent filings with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statement, except as may be required by law. These forward-looking statements speak only as of the date of this release. All forward-looking statements are qualified in their entirety by this cautionary statement.

Brian E. Powers
Chairman & CEO
216-243-2449
bpowers@crawfordunited.com

“Crawford United has a great future behind it.”

FAQ

What companies did Crawford United acquire in March 2021?

Crawford United acquired Global-Tek Manufacturing and Machining Technology.

How much annualized revenue is expected from the CRAWA acquisitions?

The acquisitions are expected to add approximately $8 million in annualized revenue.

What markets are Global-Tek and Machining Technology involved in?

They provide manufacturing solutions primarily in the defense, aerospace, and medical device sectors.

When did Crawford United announce the acquisition?

Crawford United announced the acquisition on March 2, 2021.

Will the acquisition of Global-Tek and Machining Technology affect CRAWA's earnings?

Yes, the acquisition is expected to be immediately accretive to earnings.