Park Electrochemical Corp. announced that its new wholly owned subsidiary, Park Aerospace Structures Corp., has purchased substantially all the assets and business of Nova Composites Inc. located in Lynnwood, WA. Nova Composites designs and manufactures aircraft composite structures and the tooling for such structures. These composite structures are manufactured with carbon, fiberglass and other reinforcements impregnated with formulated resins.
These impregnated reinforcements, sometimes known as "prepregs", are supplied by other subsidiaries of Park Electrochemical, as well as independent companies. Park's new composite structures business unit located in Lynnwood, WA will operate as "Park Aerospace Structures Corp." Park's new composite structures product line will be marketed and sold as Park's Nova™ product line.
During the 2007 calendar year, Nova Composites Inc. had revenues of approximately $2 M and was marginally profitable. Park plans to use Nova Composites' know-how, technology and experience in designing and manufacturing relatively complex and, in some cases, exotic aerospace and aircraft composite parts and structures as a basis to expand Park's aircraft structures operations in other regions in the world. In anticipation of the Nova acquisition, Park has already begun researching additional potential aircraft structures manufacturing locations in such regions.
Park paid approximately $4.5 M for the Nova Composites business at the closing of the acquisition, and will, depending on the achievement of certain "earn-out" objectives, pay up to an additional $5.5 M for the business over the next five years.