Communications & Power Industries Acquires M C L, Inc.
PALO ALTO, Calif.- June 25, 2013 - CPI International, Inc. and its wholly owned subsidiary Communications & Power Industries LLC (CPI) have acquired M C L, Inc., a manufacturer of power amplifier products and systems for the satellite communications market and a wholly owned subsidiary of MITEQ, Inc. CPI is a leading provider of microwave, radio frequency (RF), power and control solutions for critical defense, communications, medical and other applications. MITEQ is a manufacturer of high-performance RF microwave components and satellite communications (satcom) products.
Under the terms of the agreement, CPI acquired the assets of M C L using cash on hand. The acquisition will be integrated into CPI's Satcom Division.
CPI will honor M C L's current sales commitments, and will continue to operate M C L's manufacturing facility in Bolingbrook, Ill. for the period necessary to fulfill these backlog commitments. Following the completion of these backlog commitments, CPI will address customers' needs with products from its Satcom Division in Georgetown, Ontario, Canada and Palo Alto, Calif.
CPI will continue to support M C L's installed base of products and customers worldwide. CPI will maintain a service center for M C L products in the Chicago area and expects to retain M C L's existing global network of authorized service providers. Several of M C L's key managers and employees will transition into roles at CPI supporting M C L products.
"For more than 40 years, M C L has manufactured high-power satcom amplifier products, establishing itself as a global brand in the communications industry by providing satellite uplink products and service to customers around the world," said Joe Caldarelli, chief executive officer of CPI. "With this acquisition, CPI will continue to provide M C L's customers with the excellent service and support that they have come to expect. In addition, M C L's customers will have full access to, and benefit from, the global reach of CPI's well-established sales and service network."
"CPI has a well-earned, longstanding reputation for product and service excellence, and we believe that this acquisition will serve M C L's customers well," said Howard Hausman, president of MITEQ. "We are confident that M C L's products and customers are in good hands with CPI."
Excluding the impact of purchase accounting and non-recurring integration expenses, the acquisition is expected to be accretive for CPI in fiscal year 2014.
About Communications & Power Industries LLC
Communications & Power Industries LLC, headquartered in Palo Alto, California, is a subsidiary of CPI International Holding Corp. and CPI International, Inc. and 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.
Amanda Mogin, Communications & Power Industries, investor relations, 650.846.3998, firstname.lastname@example.org