TTM Technologies Inc (TTMI.O) will buy radar components maker Anaren Inc for about $775 million in cash from private equity firm Veritas Capital, the company said on Sunday, as it seeks to strengthen in aerospace, defense and networking markets.
The deal is expected to lead to $15 million in pretax, run- rate cost savings and add to its adjusted earnings, TTM said.
The Costa Mesa California-based company expects to finance the deal with a $700 million add-on to its existing Term Loan B and cash on hand.
Reuters in August reported that Veritas Capital was exploring the sale of Anaren.
Anaren produces microwave components for wireless, space and defense electronics providers and counts Raytheon Co (RTN.N) Lockheed Martin Corp (LMT.N), and Northrop Grumman Corp (NOC.N) as customers.
Veritas Capital purchased Anaren in 2013 for $381 million.
Barclays was financial adviser to TTM, while O‘Melveny & Myers LLP was its legal counsel.
Houlihan Lokey and Evercore advised Anaren. Skadden, Arps, Slate, Meagher & Flom LLP was its legal counsel.
Source: Reuters.com