TAT Technology Ltd. (NASDAQ: TATT) said it has entered into a definitive agreement to acquire Chromalloy Israel Ltd. for approximately USD 3.5 million.
TAT shall pay additional amounts of up to USD 2 million in the event that Chromalloy Israel meets certain annual revenue targets in 2015 and 2016. The acquisition is expected to close before the end of September 2015.
Chromalloy Israel, located in Kiryat Gat, Israel, specializes in overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes, afterburner flaps and other components. Chromalloy Israel, an FAA and an EASA approved repair station, is ISO 9001 and AS9100 certified and has been approved by major OEMs to perform unique coatings with specific substances.
Following the completion of the transaction, Chromalloy Israel is expected to change its name to Turbochrome Ltd.
TAT Technologies Ltd. is a leading provider of services and products to the commercial and military aerospace and ground defense industries.