Moog Inc. has agreed to buy the rotary transfer systems business of Morgan Advanced Materials in a $42 million deal that will expand its components group's product line and broaden its European presence.
The acquisition will add a business that makes electromechanical systems that are used to transfer current, signals and data in devices or structures that rotate. The technology can be combined for use in a variety of transfer equipment used in tower cranes, radar systems and wind turbines, as well as automotive and construction equipment.
Rotary, which had $21 million in sales last year, is expected to add about $13 million to Moog's revenues during the seven months that are remaining in the Elma aerospace company's fiscal year, which ends in September. The acquisition, which must be approved by regulators in Germany, is not expected to have any impact on Moog's profits this year.
"This acquisition gives the components group the opportunity to offer a complete line of industrial slip rings and rotary transfer solutions," said Larry Ball, the unit's president, in a statement. "It provides us a strategic base and a solid business in mainland Europe to further grow our slip ring business."
Rotary has two manufacturing sites, in Antweiler, Germany, and Chalon-St-Memmie, France.
Moog said it will pay for the acquisition using cash and borrowings from its revolving credit facility.