TORONTO -- Firan Technology Group has entered into an agreement to acquire a US-based printed circuit board fabricator focused on the aerospace and defense markets.

FTG, which did not disclose the name of the target company, said the deal would close in the second half of the year, subject to approval by the Committee on Foreign Investment in the United States (CFIUS) and other customary closing conditions.

FTG will pay C$4 million ($3 million) for all outstanding shares of the target company, subject to typical closing adjustments. The target has had reported annual sales of $5.25 million to $6.75 million in its unaudited financial statements over the past few years. The acquisition price will be paid in cash on closing using funds from FTG’s existing credit facilities.

“FTG had identified a desire to add US manufacturing capacity for standard technology product for aerospace and defense applications. This acquisition, if completed, will complement FTG’s existing facilities, add capacity and new customers,” said Brad Bourne, president and CEO, FTG. “The increased capacity and product focus will enable FTG to continue to balance its work across existing facilities in Canada, the US and China, to allow all FTG facilities to better focus on technologies best suited for their site.”

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