Astronics said Thursday it has wrapped up its $136 million purchase of an Oregon company that makes the aircraft cabin lighting and air flow components located above passenger seats, slightly more than two weeks after saying the deal could take as much as a month longer than expected to complete.
The all-cash deal to acquire PECO, first announced in late May, will expand the array of products that Astronics makes for commercial aircraft and greatly increase the amount of business that it does directly with Boeing Co., one of the two major manufacturers of commercial jets.
Most of Astronics’ business comes from cabin electronics systems that allow passengers to plug their electronic devices into their seats, along with exterior aircraft lighting systems.
PECO gets about 75 percent of its aerospace sales from passenger service units, which allow airline passengers to control the air flow and turn on lights above their seats, while also providing emergency oxygen supplies. The remaining quarter of PECO’s aerospace business comes from fuel access doors that are located on the wings of the airplane and allow access to the fuel tanks and other electronic systems located within the wing.
PECO, which is based in Portland, Ore., has about 240 employees and had $77.8 million in sales during 2012. PECO’s sales are expected to rise by about 7 percent this year to around $83 million, Astronics executives said when they announced the deal in May.
To finance the purchase, Astronics expanded its borrowing agreements with its lenders to include a $75 million five-year revolving credit facility and a five-year term loan for $190 million, said David C. Burney, Astronics, chief financial officer.
Astronics announced earlier this month that the acquisition, which had been expected to close in late June or early July, would be delayed by several weeks and set a target date of Aug. 9 for completing the purchase.