Ducommun Incorporated Announces Acquisition of Parsons Precision Products, Inc

Business Wire, Nov 10, 1999

LOS ANGELES--(BUSINESS WIRE)--Nov. 10, 1999--

Ducommun Incorporated (NYSE:DCO) today announced that it has acquired the assets of Parsons Precision Products, Inc. (Parsons), a subsidiary of Jordan Industries, Inc.

Parsons is based in Parsons, Kan., and is a leading manufacturer of complex titanium hot formed sub-assemblies and components for commercial and military aerospace applications. Sales for the 12-month period ended Sept. 30, 1999 exceeded $13 million.

Phil Stephens, president of Parsons, and the management team will remain with the Company. Parsons will report through AHF-Ducommun Incorporated, an existing Ducommun subsidiary, which designs, engineers and manufactures large, complex components using stretch-forming and hot forming processes and computer-controlled machining in aluminum, titanium and other exotic metals. Parsons will remain at its existing Parsons facility.

Ducommun believes that the close similarities between AHF and Parsons, especially in the areas of manufacturing, engineering, sales and marketing, will benefit both businesses. While there is some overlap in customers, Parsons and AHF have a number of different customers which provides great opportunity to cross-sell each company's capabilities to the other company's customers.

In addition, AHF's greater financial, engineering, sales and marketing resources should enable Parsons to grow in the years ahead.

Joseph C. Berenato, chairman, president and chief executive officer of Ducommun, stated: "The addition of Parsons to our AHF subsidiary extends our capabilities in titanium hot forming, as well as broadening our customer base. Together these businesses will be able to attract more assembly work through their combined engineering and manufacturing capabilities. Finally, we expect this acquisition to be additive to earnings in the first year."

Founded in 1849, Ducommun Incorporated manufactures components and assemblies for the aerospace industry.

The statements made in this news release are forward-looking statements that involve risks and uncertainties. The Company's future financial results could differ materially from those anticipated due to the Company's dependence on conditions in the airline industry, the level of new commercial aircraft orders, the production rate for the Space Shuttle program, the level of defense spending, competitive pricing pressures, technology and product development risks and uncertainties, product performance, risks associated with acquisitions and dispositions of businesses by the Company, increasing consolidation of customers and suppliers in the aerospace industry, availability of raw materials and components from suppliers, and other factors beyond the Company's control.