Teledyne Completes Acquisition of Micropac

Rhea-AI Summary

Teledyne Technologies (NYSE:TDY) has successfully completed the acquisition of Micropac Industries (OTC:MPAD) through an all-cash transaction valued at approximately $57.3 million, including Micropac's net debt as of August 24, 2024. Under the merger agreement, Micropac stockholders received $20.00 per share in cash.

Micropac, established in 1963, specializes in designing and manufacturing microelectronic circuits, optoelectronic components, and sensor and display assemblies, primarily serving military, aerospace, and medical sectors. The company will maintain its brand name and continue operations from its new facility in Garland, Texas, while leveraging Teledyne's market reach and technical capabilities.

Positive

• All-cash acquisition valued at $57.3 million
• Micropac shareholders receive $20.00 per share
• Strategic expansion into microelectronics and optoelectronics markets
• Access to military, aerospace, and medical sectors
• Retention of existing operations and facilities

Negative

• Addition of net debt to Teledyne's balance sheet

Insights

Financial Analyst

This $57.3 million acquisition strategically enhances Teledyne's position in the specialized microelectronics sector. The purchase price represents a premium valuation, reflecting Micropac's niche capabilities in military and aerospace applications. The deal's structure using cash indicates Teledyne's strong balance sheet position and should be immediately accretive to earnings given Micropac's established revenue streams.

The integration presents notable synergy opportunities through Teledyne's broader market access and technical infrastructure, while maintaining Micropac's operational independence preserves its specialized expertise and customer relationships. This bolt-on acquisition aligns with Teledyne's historical strategy of acquiring complementary technologies in high-barrier-to-entry markets.

Tech Industry Analyst

The acquisition strengthens Teledyne's microelectronics portfolio, particularly in mission-critical applications. Micropac's expertise in optoelectronic components and sensor assemblies complements Teledyne's existing capabilities in imaging and sensing technologies. The retention of Micropac's facility and brand identity suggests a thoughtful integration approach that preserves their technical capabilities while leveraging Teledyne's resources.

For investors unfamiliar with the technology: Think of this as adding a specialized boutique workshop to Teledyne's industrial complex - Micropac brings unique craftsmanship in making highly reliable electronic components that must work flawlessly in extreme conditions, from military aircraft to medical devices. Their new facility in Garland represents modern manufacturing capabilities that Teledyne can now utilize.

THOUSAND OAKS, Calif. & GARLAND, Texas--(BUSINESS WIRE)-- Teledyne Technologies Incorporated (NYSE:TDY) (“Teledyne”) and Micropac Industries, Inc. (OTC:MPAD) (“Micropac”) jointly announced today the successful completion of the previously announced merger of Micropac with a wholly-owned subsidiary of Teledyne.

Under the terms of the merger agreement, Micropac stockholders received $20.00 per share in cash without interest and subject to required withholding taxes. The all-cash transaction valued Micropac at approximately $57.3 million, taking into account Micropac’s net debt as of August 24, 2024.

Micropac, founded in 1963, designs and manufactures microelectronic circuits, optoelectronic components, and sensor and display assemblies, primarily for military, aerospace, and medical applications.

“We are delighted to welcome Micropac and its employees to the Teledyne family,” said Robert Mehrabian, Executive Chairman of Teledyne. “Likewise, Micropac is proud to join Teledyne, and we look forward to leveraging Teledyne’s additional market reach and technical capabilities, while maintaining the Micropac name and continuing to operate from our new state-of-the-art facility in Garland, Texas,” said Mark King, Chairman, President and Chief Executive Officer of Micropac.

About Teledyne

Teledyne is a leading provider of sophisticated digital imaging products and software, instrumentation, aerospace and defense electronics, and engineered systems. Teledyne’s operations are primarily located in the United States, Canada, the United Kingdom, and Western and Northern Europe. For more information, visit Teledyne’s website at www.teledyne.com.

About Micropac

Micropac is a diversified, high technology company located in Garland, Texas, specializing in high reliability microcircuit products and electronic assemblies, power products, sensors, displays, optical data transport products and optoelectronic components and assemblies. Micropac develops and manufactures complete custom designs to meet specific customer applications and requirements. Our products are being used throughout the world in a wide variety of military/aerospace, space, medical and industrial applications. Visit www.micropac.com for more information.

Forward Looking Statements Cautionary Notice

This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, relating to an acquisition of a company. Actual results could differ materially from these forward-looking statements. Many factors, including the ability of Teledyne and Micropac to achieve anticipated synergies, as well as market and economic conditions beyond either company's control, could change anticipated results.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241230232146/en/

Jason VanWees

+1.805.373.4542

Source: Teledyne Technologies Incorporated

FAQ

How much did Teledyne (TDY) pay for Micropac acquisition?

Teledyne paid approximately $57.3 million in an all-cash transaction, including Micropac's net debt as of August 24, 2024.

What was the per-share price for Micropac shareholders in the TDY acquisition?

Micropac stockholders received $20.00 per share in cash, subject to required withholding taxes.

What products does Micropac bring to Teledyne's portfolio?

Micropac brings expertise in microelectronic circuits, optoelectronic components, and sensor and display assemblies, primarily for military, aerospace, and medical applications.

Will Micropac maintain its operations after the TDY acquisition?

Yes, Micropac will continue to operate under its own name from its state-of-the-art facility in Garland, Texas, while leveraging Teledyne's market reach and technical capabilities.