Moog Inc., moving to bolster its space products business, has acquired a Colorado engineering company in a deal valued at $48 million, the Elma-based maker of motion control equipment said Wednesday.
Moog purchased Broad Reach Engineering Co., which is located in Golden, Colo., in a deal expected to add about $32 million to the Elma company's annual sales during the fiscal year that ends in September. The acquisition is not expected to have any impact on Moog's profits during the fiscal year because of purchase accounting adjustments, the company said.
“The acquisition of Broad Reach brings several very strong products to our space portfolio, as well as an experienced team of individuals,” Jay Hennig, the president of Moog's space and defense business, said in a statement.
Broad Reach, which was founded in 1997, designs and makes spaceflight electronics and software that are used for a wide range of aerospace, scientific, commercial and military purposes. Broad Reach also provides ground testing, launch and in-orbit operations. The company also has an office in Tempe, Ariz., that is a design center for the company's avionics and software.
Broad Reach had about $27 million in sales during the past 12 months, Moog said.
Under the terms of the deal, Moog is acquiring Broad Reach for $37 million in cash, along with a $6 million note. Broad Reach's owners also have the potential to receive an additional $5 million payment if the business meets certain performance targets.