WOODLAND, Calif. - February 13, 2012 - The Econco Division of Communications & Power Industries LLC (CPI) has acquired the business of Freeland Products, Inc., a Louisiana-based company that repairs and rebuilds vacuum electron devices for the communications, industrial, scientific and medical markets. CPI Econco Division and Freeland Products provide similar services to customers in shared end markets.
Under the terms of the asset purchase agreement, CPI Econco Division has acquired all of the inventory, equipment, supplies and substantially all of the other assets of Freeland Products for an undisclosed sum. CPI Econco Division will integrate these assets into its Woodland, Calif. facility, and will run the business from that location. The acquisition was funded entirely from CPI's cash on hand.
"Econco and Freeland Products have long shared a commitment to providing customers with high-quality rebuilt tubes and exceptional service, and Econco intends to continue this commitment to our customers going forward. We look forward to working with Freeland's customers," said David Elliott, president of CPI Econco Division. "In addition, I would personally like to thank Joel Freeland and the Freeland family for their contributions to our industry over the past seven decades."
"I am pleased to have such a worthy and dedicated successor to the business started by my grandfather in 1940,"said Joel Freeland, president of Freeland Products. "I am fully confident in Econco's ability to meet the future needs of Freeland's customers and to provide them with the excellent products and services they have come to expect from both of our companies."
About CPI Econco Division
CPI Econco Division, a recognized leader in rebuilt power tubes headquartered in Woodland, California, is a wholly owned subsidiary of Communications & Power Industries LLC, a leading provider of microwave, radio frequency, power and control solutions for critical defense, communications, medical, scientific and other applications. Communications & Power Industries LLC develops, manufactures and distributes products used to generate, amplify, transmit and receive high-power/high-frequency microwave and radio frequency signals and/or provide power and control for various applications. End-use applications of these systems include the transmission of radar signals for navigation and location; transmission of deception signals for electronic countermeasures; transmission and amplification of voice, data and video signals for broadcasting, Internet and other types of commercial and military communications; providing power and control for medical diagnostic imaging; and generating microwave energy for radiation therapy in the treatment of cancer and for various industrial and scientific applications.
Certain statements included above constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements provide our current expectations, beliefs or forecasts of future events. Forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual events or results to differ materially from the results projected, expected or implied by these forward-looking statements. These factors include, but are not limited to, competition in our end markets; our significant amount of debt; changes or reductions in the U.S. defense budget; currency fluctuations; goodwill impairment considerations; customer cancellations of sales contracts; U.S. Government contracts; export restrictions and other laws and regulations; international laws; changes in technology; the impact of unexpected costs; the impact of a general slowdown in the global economy; the impact of environmental laws and regulations; and inability to obtain raw materials and components. These and other risks are described in more detail in our periodic filings with the Securities and Exchange Commission. As a result of these uncertainties, you should not place undue reliance on these forward-looking statements. All future written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. We undertake no duty or obligation to publicly revise any forward-looking statement to reflect circumstances or events occurring after the date hereof or to reflect the occurrence of unanticipated events or changes in our expectations.