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Posted: February 19, 2008
Raymor Acquires SE Techno Plus and Establishes its One-Stop-Shop Facilities for its Coating Division
(Nanowerk News) Raymor Industries Inc., a leading developer and producer of single-walled carbon nanotubes, nanomaterials and advance materials, announces that its wholly-owned subsidiary, Raymor Aerospace Inc. has purchased SE Techno Plus Inc., a company specializing in the manufacturing, repair and precision grinding with super finishing of industrial and aerospace components.
As previously announced, this is a strategic acquisition which allows Raymor Aerospace to implement its one-stop-shop facilities for its coating services in the aerospace and industrial sectors and develop a larger market presence for Raymor's other subsidiaries. Certain major manufacturers in the aerospace sector for which Raymor has recently been accredited require this additional service. The purchase is estimated to generate a 20% return on capital for Raymor and the transaction is expected to be accretive to earnings. The purchase price includes a cash payment with a balance of sale to be payable over the next three (3) years. Raymor has already received from its financial institution, the financing for the acquisition and current operations of its newly acquired subsidiary, subject to usual conditions.
SE TECHNO PLUS has developed an expertise recognized by the industry and has maintained an annual increase averaging a sales turnover of more than 15% per year since the beginning of its operations nine (9) years ago. The audited revenues of SE TECHNO PLUS for the year ended November 2006 were $5,235,157 with an adjusted EBITDA of $628,257 representing an increase in sales of 21.9% compared to the 2005 results. The company has forty-six (46) employees located at its 26,000 square feet plant in Laval. To ensure the continuity of its operation, no layoffs are expected as a result of this acquisition. Management is also kept in place and the company will operate as a stand alone entity, which is located less than fifteen (15) minutes away from the Raymor plant in Boisbriand, Canada.
With this acquisition, Raymor Aerospace has crossed an important phase in its plan to offer a one-stop-shop to its aerospace and industrial sectors customers. The majority of the sales turnover of SE TECHNO PLUS is generated by its expertise in the manufacturing, repair and precision grinding with super finishing. This expertise is unique in the region and Raymor Aerospace's customers are demanding more and more that their coating manufacturers include these services.
Stephane Robert, President and CEO of Raymor Industries had the following to say: "When we incorporated Raymor Aerospace in 2007, we promised to offer our customers a one-stop-shop representing the highest quality performance and service. Twelve (12) months later, we have put in place one of the largest coating capacity organizations in Eastern Canada and we also obtained the AS9100 accreditation demanded by the Aerospace industry. The acquisition of SE TECHNO PLUS allows us to offer a one-stop-shop service to our customers, increase our client base and our sales turnover."
Some data on the aerospace sector: This sector includes commercial, regional and business aeronautics, general and military aviation. The Airline Monitor estimates that the total market of commercial airplanes alone will reach $65.4 G in 2007. Also according to Airline Monitor, the two largest competitors being Boeing and Airbus, should deliver a global total amount of approximately 925 commercial airplanes in 2007 and at June 30, 2007, had a combined order booking of 4,969 commercial airplanes. Boeing foresees that the aeronautic world fleet will double over the next twenty (20) years (until 2026), which should bring a demand of 28,600 new aeronautics during this period. According to Forecast International, the worldwide market of military airplanes should increase by $156 G between 2006 and 2015.
About Raymor Industries
RAYMOR INDUSTRIES INC. (TSX VENTURE: RAR) has as its mission to become a leading developer of high technology for the production of single-walled carbon nanotubes, nanomaterials and other advanced materials for high value-added applications. Raymor Industries operates three wholly-owned, industrial subsidiaries, Raymor Nanotech, Raymor Aerospace and AP&C Advanced Powders and Coatings, specializing in nanotechnology and advanced materials, and comprising four divisions: (1) nanotechnology products, including nano-powders, nano-coatings, and single-walled carbon nanotubes (C-SWNT) for "the applications of tomorrow"; (2) thermal spray coatings, which largely targets military, aeronautical, aerospace, specialized industrial, and mining applications; (3) spherical metallic powders, primarily used for biomedical and aerospace applications; and (4) net-shape forming, a component manufacturing technique used for ballistic protection and other aerospace and military applications. Raymor holds the exclusive rights to more than 20 patents throughout the world, with other patents pending.