Cade Industries, Inc. Acquires Central Engineering Company
3 November 1997
Cade Industries, Inc. Acquires Central Engineering Company
LANSING, Mich., Nov. 3 -- Cade Industries
announced today that it has acquired Central Engineering Company, a Minnesota
based company, and the underlying real estate used in its operations for
approximately $7.7 million in cash and 250,000 shares of Common Stock. The
cash portion of the purchase was financed through additional bank debt.
Central Engineering, formed in 1956, manufactures engine test cell and
associated ground support equipment. Approximately 75% of its revenues are
from foreign customers. Cade believes the acquisition will be accretive to
earnings and add $15-20 million in annual revenues. The acquisition of
Central Engineering adds the world's only turnkey capability to the aviation
industry for the design and construction of gas turbine test cell facilities
to the Cade business.
Richard A. Lund, Cade's President, stated, "We welcome Central Engineering
Company employees and customers to the Cade family of business, and we look
forward to continuing the tradition of excellence in products and services
throughout the world. We are very pleased that Mr. Loren Swanson, the founder
and President of Central Engineering Company will continue in the capacity as
Chairman."
Cade designs, develops, manufactures, overhauls and repairs high
technology composite components for the aerospace and air transport
industries. The Company's operating subsidiaries are located in Lansing,
Michigan; San Diego, California; Grand Prairie, Texas (Dallas); and
Minneapolis, Minnesota.
The above statements involving sales and earnings are forward-looking
statements that involve a number of risks and uncertainties. Among the
factors that could cause actual results to differ materially from those which
are anticipated are the following: business conditions generally and
conditions specifically in the aircraft and aerospace industries; timing of
receipt and delivery of orders; price fluctuations for raw materials and
labor; competitive factors, including price competition from other suppliers
of similar products and overhaul and repair services; foreign currency, risk
of obsolescence of tooling inventory before full amortization on project
costs; risks associated with the integration of Central Engineering; and
cancellation of orders.
For more information or to receive a copy of this press release, please
call our Company News On-Call at 1-800-758-5804 - extension 075675 or you can
access the information via the Internet at http://www.prnewswire.com or for
further information on Cade Industries you can access the Company's web site
at http://www.cade-industries.com.
SOURCE Cade Industries
