SYDNEY, AUSTRALIA: Structural Monitoring Systems Plc (SMS) has purchased the audio products business division from Eagle Copters Ltd., Calgary, Canada, a news release said.
In light of the Eagle Audio transaction, it is regarded – simply, and easily – as the best add-on opportunity we have found since acquiring AEM in late-2017 – a deal that will provide major value upside for the Company, and sits right in our wheelhouse.
Post the close of this transaction we will continue to aggressively search for, identify and execute further add-on acquisitions that are able to further leverage the rapidly evolving capability and capacity of our existing platform – in addition to supporting the near-term exciting CVM rollout,” Will Rouse, SMS Group Chairman said.
Purchase price CAD 4.281 million, with annual top-line sales AUD 3.5 million, minimum normalised EBITDA circa-AUD2.2 million. To date, Eagle Audio’s business net performance, and total top-line sales, have exhibited robustness and stability through the entire COVID pandemic.
Toby Chandler, SMS Group CEO, stated: “Less than four years ago, SMS purchased 100% of AEM, for $C10 million. To date, this has been an overwhelmingly positive and value-accretive transaction for the Company, and all stakeholders.
With the addition of the Eagle Audio business, and potential further acquisitions that will be considered over the coming quarters, today the value of the AEM platform is multiples of the purchase price SMS historically paid.
Additionally, we now look forward to the forthcoming, and very exciting, commercialisation of the Company’s unique and disruptive CVM technology suite. We have navigated a long road to get here, and as a result, have secured a highly protected and world-leading ability to introduce CVM to the world’s civilian and military global fixed-wing and rotorcraft industries.
Beyond a successful commercial execution in the aerospace arena, the Company also has the enviable position to identify and exploit the multiple opportunities that exist for CVM in many global industries -fully separate to aerospace.”