Ducommun Incorporated, a global supplier of electronic systems and structural solutions for the aerospace and defense industry, has rejected an unsolicited revised, non-binding indication of interest from Albion River LLC to acquire all outstanding shares of Ducommun for $65.00 per share in cash. The company's board of directors has unanimously determined that it is not in the best interests of the company and Ducommun shareholders to pursue further discussions regarding the proposal.
The board and management of Ducommun remain focused on successfully delivering their Vision 2027 strategy, which aims to substantially grow and increase the long-term value of the company for its investors. Over the past seven years, the company has undergone significant transformation and achieved impressive financial performance:
- Revenue has grown from $551 million in 2016 to a new all-time revenue record of $767 million in the last twelve months ending Q1 2024.
- EBITDA margins have expanded from 10.1% in 2016 to 14.4% in the first quarter of 2024.
- Market capitalization has increased from approximately $286 million at the end of 2016 to approximately $929 million as of July 23, 2024.
- Despite the impact of the COVID-19 pandemic and the 737 MAX grounding, Ducommun's adjusted EBITDA has been minimally affected due to its growth in the military and space business from $278 million in 2018 to $421 million in 2022, along with proactive cost management.
Furthermore, the company's strategic initiatives have positioned it to benefit from the continuing recovery in aircraft production rates over the next several years. The board and management team expect that, as disclosed in the Vision 2027 strategy, by 2027 Ducommun will achieve $950 million to $1,000 million in net revenues, representing a 33% to 40% increase since 2022, with approximately 18% adjusted EBITDA margins.
The board believes that Albion River’s revised proposal significantly undervalues Ducommun’s long-term value for shareholders and reiterates its commitment to the strategy of substantial growth and increased long-term value for investors.
Ducommun Incorporated specializes in delivering value-added innovative manufacturing solutions to customers in the aerospace, defense, and industrial markets, and specializes in electronic systems and structural systems to produce complex products and components for various applications. Today the company's shares have moved -2.0% to a price of $61.94. If you want to know more, read the company's complete 8-K report here.
