Moog control components purchases Videolarm surveillance products
High-performance systems provider Moog Inc. announced that it has agreed to acquire Videolarm Inc. for $45 million in cash, according to the company
Videolarm is expected to add $15 million to Moog’s sales for the balance of fiscal year 2009. The East Aurora, N.Y.-based company expects that the acquisition will not have a significant impact its fiscal year 2009 earnings per share. The deal will be reported as part of Moog’s Space and Defense segment.
Videolarm is a leading supplier of products for surveillance systems including integrated cameras, vandal-resistant protective housings and networked solutions. The Decatur, Ga.-based company had 2008 revenues of $19.5 million.
Moog Inc. is a global designer, manufacturer and integrator of precision control components and systems. The company’s products can be found in military and commercial aircrafts, satellites and space vehicles, launch vehicles, missiles, automated industrial machinery and marine and medical equipment.
President of Moog’s Space and Defense Segment Jay Hennig said that the company intends to leverage Moog
's capabilities and solutions in the security and surveillance markets.
“Applications are becoming more demanding in terms of networking, system integration and meeting extreme environmental requirements,” Hennig said in a statement. “Videolarm complements our 2007 QuickSet acquisition with innovative solutions and accessories, bringing more than 30 years of additional security experience to our product portfolio.”
Videolarm Marketing Manager Jonathan Herrera told WinmoEdge that Moog is essentially hoping to branch out and strengthen its hold on security. He added that the company recognizes Videolarm as a major player in the industry with its video camera accessories, and wanted to expand on that success.
“With that, they can hone in on and intersect their placement in the industry, which is heavy with the military, and strengthen that,” he said. “We can pool their expertise in that industry so we can definitely increase on our end. For the most part, more of Videolarm’s market is the private industry.”
Investor Relations and Media Relations Manager Anne Luhr told WinmoEdge that Moog was unwilling to provide a great amount of detail about the acquisition.
“Since the deal just closed, we are not even in a position to comment on our plans, and since we are a public company we disclose only a limited amount of information (if any) on our plans for the companies we buy,” she said.
Luhr added that Moog does not work with outside agencies, seeing as most of its work is primarily government-related.
Herrera, on the other hand, said that while most of Videolarm’s efforts are done in house, the company does outsource its public relations work to Brown Communications based out of Calgary, Alberta.
He said that he was unsure whether the company would be open to hearing from agencies, but said that interested firms should follow up in the next couple of months to give the company time to get a better understanding of how it will move forward, post-acquisition.
According to The Nielsen Company, Moog spent about $500,000 on business-to-business initiatives in 2007.
Interested agencies may find an opportunity with Videolarm, seeing as Moog primarily handles its work through government channels and would not require external assistance. Videolarm may be open to hearing from firms in the coming months, so keep the company on a short-term prospect list and reach out at the appropriate time.
Seneca & Jameson Road
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President – Space & Defense Segment
President & Chief Executive Officer
2525 Park Central Blvd.
Decatur, GA 30035
(800) 554-1124 / x. 134
Founder, President & Chief Executive Officer
(800) 554-1124 / x. 109